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Whether employer can allow 80G deduction while calculating TDS from salary income?

April 26, 2017calculating deduction employer income salary TDS

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Whether employer can allow 80G deduction while calculating TDS from salary income?

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Ans: Employer is not allowed to take into account section 80G deduction in respect of donations made for charitable purposes while calculating TDS on salaries. However, DDO may allow (after due verification) the donations made to specified funds (such as Rajiv Gandhi Foundation and National Defense Fund) as specified in CBDT circular no 9 /2008. UPDATE (01/02/10): As per the latest salary TDS notification issued in Jan 2010 by the CBDT (Circular no 1/2010 dated 11th Jan 2010), there are two conditions for allowing 80G deduction by the employer: 1. Donation is made to any of the three specified funds: Prime Minister’s National Relief Fund, Chief Minister’s Relief Fund, or Lieutenant Governor’s Relief Fund. 2. Donation is made through the employer. For all other donations, tax benefit will have to be claimed by you in the return of income.