Prabhakar Patil Education Society (PPES)

Benefit of 35AC Certificate To Donor

To undertake and promote reinvestment of business profits in areas where massive capital input is required for socio-economic development, a tax incentive has been provided under 35AC, of the Income Tax Act allowing for full deduction of the entire amount paid by a taxpayer carrying on a business or profession for financing projects or schemes promoting social and economic welfare. The objective of the said provision is to encourage business organizations and wealthy individuals to contribute more in social and economic welfare of general public. By donating any amount for any approved project under the provision of 35 AC of Income Tax Act, a donor will receive 100% rebate of Income Tax on the donated amount.

Benefit of 80G Certificate To Donor

If the amount of deduction to a charitable organization or trust is more than 10% of the Gross Total Income computed under the Act (as reduced by income on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G. In other words, while computing the total income of an assessee and for arriving at the deductible amount under section 80G, first the aggregate of the sums donated has to be found out. Then 50 per cent of such donations have to be found out and it should be limited to 10 per cent of the gross total income. If such amount is more than 10 per cent of the gross total income, the excess will have to be ignored.