If a taxpayer has a gross total income of ₹10,00,000 and has made a donation of ₹1,00,000 to a charitable organization, what is the maximum deduction they can claim under Section 80G?
Practice Questions
1 question
Q1
If a taxpayer has a gross total income of ₹10,00,000 and has made a donation of ₹1,00,000 to a charitable organization, what is the maximum deduction they can claim under Section 80G?
₹1,00,000
₹50,000
₹75,000
₹25,000
The maximum deduction under Section 80G can be up to 100% of the donation amount, subject to conditions.
Questions & Step-by-step Solutions
1 item
Q
Q: If a taxpayer has a gross total income of ₹10,00,000 and has made a donation of ₹1,00,000 to a charitable organization, what is the maximum deduction they can claim under Section 80G?
Solution: The maximum deduction under Section 80G can be up to 100% of the donation amount, subject to conditions.
Steps: 7
Step 1: Understand the taxpayer's gross total income, which is ₹10,00,000.
Step 2: Identify the amount donated to a charitable organization, which is ₹1,00,000.
Step 3: Know that under Section 80G, donations can be eligible for deductions.
Step 4: Check the percentage of deduction allowed under Section 80G. It can be 100% or 50% depending on the organization.
Step 5: Since the donation is ₹1,00,000, if it qualifies for 100% deduction, the maximum deduction will be ₹1,00,000.
Step 6: If the donation qualifies for 50% deduction, the maximum deduction will be ₹50,000.
Step 7: Conclude that the maximum deduction the taxpayer can claim under Section 80G is either ₹1,00,000 or ₹50,000, depending on the organization.
