Deduction U/s 80 G by Employer. *TDS Salaries*.
Do you know that as employer *you cannot allow* 80-G, Donation deduction to your employees.
And if you do…. and you are caught….. you are liable for payment of that much TDS + intt + penalties.
CBDT vide its CIRCULAR NO.1/2010 F.No.275/192/2009IT(B)]dt. 11/01/2010 says while deducting income tax at source from salary the employer need not consider 80G payment of employee.
Extract is given below:
“G. Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc.
Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes.
The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the tax payer in the return of income.
However in cases where employees make donations to the Prime Minister’ National Relief Fund, the Chief Minister’s Relief Fund through their respective employers, it is not possible for such funds to issue
separate certificate to every donations as indicated above will be admissible under section 80G on the basis of employers certificate….. Circular No.2/2005, dated 12-1-2005.”