Millions of PF account holders got a bounty of 9.5% interest for the year 2010-11. However there was a lack of clarity on the taxability of the Interest over 8.5% as the finance ministry had notified a interest exemption on PF deposits @8.5%. In its ...

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"Investment Guru" - 5 new articles

  1. Enjoy PF Interest @9.5% tax free
  2. DDA Housing Scheme 2010 Waiting List
  3. DDA HOUSING SCHEME 2010 DRAW RESULTS
  4. DDA Housing Scheme 2010 Allotment Status
  5. Can I claim 80G deduction through my employer ?
  6. More Recent Articles

Enjoy PF Interest @9.5% tax free

Millions of PF account holders got a bounty of 9.5% interest for the year 2010-11. However there was a lack of clarity on the taxability of the Interest over 8.5% as the finance ministry had notified a interest exemption on PF deposits @8.5%.

 

In its notification No. 24/2011 dated 13th May,2011, the ministry of finance has revised the rate of interest notified under rule 6(b) of Part A of IVth Schedule to the Income tax act,1961 to 9.5%.

This clears the way of tax exemption on Interest Income from PF deposits @9.5% for the financial year 2010-11.

      

DDA Housing Scheme 2010 Waiting List

DDA has announced the list of wait listed applicants who may be alloted flats, if flats alloted in the scheme are surrendered . The waiting list is valid only for a period of 9 months. A draw will be held only once after six months, from date of issue of demand letters, for allotment of the surrendered flats to the wait listed registrants as per the priority decided initially. Only those flats which are surrendered within six months from date of issue of demand letters would be included for allotment to waitlisted registrants.

Click here to see if you are among one of the applicants in the waitlist.
      

DDA HOUSING SCHEME 2010 DRAW RESULTS

DDA has announced the results of Housing Scheme 2010. Click the link below to check your allotment status.

DDA Housing Scheme 2010 Draw Results
      

DDA Housing Scheme 2010 Allotment Status

The draw for DDA Housing Scheme 2010 is expected to happen between 15th to 20th April,2011. This draw will determine the lucky 16000 applicants out of the 7.5 Lacs applications received for the scheme.

DDA will also post the status of applicants eligible for the draw on 29th March,2011. Applicants will get a chance to submit the corrrection, if their forms are found to be filled incorrectly /for missing information. Applicants should ensure that they check the eligibility status of their forms and submit corrections, if required, to qualify for the draw.

Update: The Draw for DDA Housing Scheme 2010 will be held on Monday,18th April,2011. However, the results of the draw would be available on DDA website only on Tuesday, 19th April,2011. The results will also be published in the newspapers.
      

Can I claim 80G deduction through my employer ?

Section 80 G of the Income Tax act provides for deduction from  Taxable income in respect of donation made to funds and charitable institutions. These institutions must have obtained the required approval from Income Tax department.

 

I am covering two aspects in relation to the 80 G deduction :

1. Can I claim 80 G deduction through my employer so that it forms part my Form 16 ?

2. What are the important points to be kept in mind while donations to the trusts and institution ?

 

Claiming 80G deduction through employer permissible

As per clarification provided on Income Tax department website, deduction under Section 80G can be claimed through employer only in case of contribution to the institutions specified.

No deduction should be allowed by the employer/DDO, from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible u/s 80G will have to be claimed by the taxpayer in the return of income. However, DDOs, on due verification, may allow donations to the following bodies to the extent of 50% of the contribution:

a) The Jawaharlal Nehru Memorial Fund;

b) The Prime Minister's Drought Relief Fund;

c) The National Children's Fund;

d) The Indira Gandhi Memorial Trust;

e) The Rajiv Gandhi Foundation,

and to the following bodies to the extent of 100% of the contribution:

1) The   National   Defence   Fund   or   the   Prime Minister's National Relief Fund;

2) The Prime Minister's Armenia Earthquake Relief Fund;

3) The Africa (Public Contribution-India) Fund;

4) The   National   Foundation   for   Communal Harmony;

5) The Chief Minister's Earthquake Relief Fund, Maharashtra;

6) The National Blood Transfusion Council;

7) The State Blood Transfusion Council;

8) The Army Central Welfare Fund;

9) The Indian Naval Benevolent Fund;

10) The Air Force Central Welfare Fund;

11) The Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996;

(12) The National Illness Assistance Fund;

(13) The Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund, in respect of any State or Union Territory, as the case may be, subject to certain conditions;

(14) The University or educational   institution   of national eminence approved by the prescribed authority;

(15) The National Sports Fund to be set up by the Central Government;

(16) The National Cultural Fund set up by the Central Government;

(17) The Fund for Technology Development and Application set up by the Central Government;

(18) The national trust for welfare of persons with autism, cerebral palsy mental retardation and multiple disabilities.

For donations made to fund/institutions other than mentioned above, you cannot claim the deduction through your employer.Hence you have to claim it while filing your return.

 

Keeps following in mind while making donations

1. Ensure that the fund /institution is approved by the Income tax department for deduction under this section. For check this, please ask for a photocopy of 80G eligibility certificate from the fund/institution.

2. Always ensure that the Receipt issued by the fund /institution carries the Name and address of the trust, your name, registration number issued to the trust and the validity period of the Registration. Also make sure to tally the the amount written in words and in figures.

      

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