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Pan (Permanent Account Numbers) Solutions

Wednesday, March 31, 2010 | comments

Friends

Some common questions relating to pan (Permanent Account Number)  are  explained as under:-

Queries
a)    What is benefit of Permanent Account Number Card.
b)     Return submission is mandatory or not after getting Pan Number
c)     Use of different Pan Number.  
d)     Two Pan Numbers.
e)     Duplicate Pan Card.
f)     Wrong Pan Number on Return.

Clarity of above questions are as under:-
a)    Pan Card is mandatory for completing numerous financial transactions such as Opening of Bank Account, purchase of high-end consumer item, foreign travel, transaction of immovable properties, dealing in securities etc.   It is also valuable as photo identification

b)    No,  return is not mandatory after having pan cards.  It is only mandatory for those whose taxable income is greater than the basic exemption limit.

c)   It is advisable to Use only one Pan number.

d)   In case you have two pan card, you should immediately surrender one out of two.    If you do not surrender, penalty of Rs. 10,000/- can be imposed at any time.

e)   For getting duplicate pan card, you will have to submit this form (Click here)  and  submit with nodal centers appointed by Income Tax Department.

f)    We should mention correct pan number on  our return.  Otherwise penalty can be raised by Income Tax Department .


On Line Income Tax Calculator and other important calculators  (click here)

New Tax Rates After Budget 2010

Tuesday, March 30, 2010 | comments








Friends

Our Finance Minister, Shri Pranab Mukherjee has delcared Budget 2010 on 26th February, 2010. Regarding Income Tax slab , Slab has been changed. Before budget and after budget income tax slabs in detail is given as under :

New Slab after Budget 2010, Financial Year 2010-11, Assessment Year 2011-12
For Individuals or HUF
For Man
Basic exemption will be Rs. 160000
160000 to 500000, tax rate= 10%
500001 to 800000, tax rate= 20%
800001 and above, tax rate =30%
In case Women basic exemption will be Rs. 1,90,000/- and for senior citizen (age greater then 65 years) will be Rs. 2,40,000.00, mean no change.

Old Rates
For Individuals or HUF for Financial Year 2009-2010, Assessment Year 2010-11
For Man
Basic exemption was Rs. 160000
160000 to 300000, tax rate =10%
300001 to 500000, tax rate= 20%
500001 and Above , tax rate =30%
In case Women basic exemption was Rs. 1,90,000/- and for senior citizen (age greater then 65 years) was Rs. 2,40,000.00

Surcharge
Pre Budget 2010, initially, there was surcharge if taxable income was greater than 10 Lakh, But later then it was removed in last budget 2009, In current Budget 2010, No Change regarding Surcharge.

Education Cess and Secondary Higher Education Cess
Earlier it was 2%+1%= 3% in Financial Year 2009-10, No change in Current Budget 2010.


After reviewing above rates it has been found that there is no increase in Basic exemption only slab rates has been increased which is much benefitional to those who are paying much Income Tax.


How to Calculate Income Tax for the Financial Year 2010-11 or Assessment Year 2011-12


New Tax Rates in a glance (Click Here)

For calculatiing income tax , necessary updates has been made in calculator. To calculate the tax (Click Here)


89(1) Relief Calculator (Excel Based)

Monday, March 29, 2010 | comments

Friends
Calculate Tax  Yourself on Your bifurcated arrear get Tax Relief u/s 89(1) 
                 As Government employees are receiving  arrears of 6th Pay Commission.  They are paying Income Tax on their salary + arrears.  They can save income tax via bifurcation of  his arrear amount year wise w.e.f  2005-2006. 

Instructions of using this calculator
1)     Download attached zip file. It is totally free for personal use.
2)     Only white cells are for data entry.
3)     Yearwise Salary w.e.f. 2005-06 are to be filled in white cell
4)     Year wise amount of Arrears are to be filled in white cells
5)     Name of Employees, Designation, Department can be filled in Table "A"
6)    Default Sex is Man. But it can be changed for Man, Women or Sr. Citizen  can be selected  placing M =Man, W= Women, S = Sr. Citizen

                                For Download for 89(1) relief and another important Calculators like as Income Tax Calculator w.e.f. F.Y. 2005-06, Saving Bank Interest Calculator, House Rent Allowance Calculator, Post Office R.D. Interest Calculator , NSC Interest Calculator, Disallowed Salary/Remuneration Calculator, Depreciation Calculator , EmI Calculator, Bank Loan Interest Calculation Calculator, .Click Here

Specially, Arrear Calculator (Click Here)

Income Tax Calculator Financial Year 2009-10 or Assessment Year 2010-11

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Excel Based Income Tax Calculator Financial Year 2009-10 or Assessment Year 2010-11
Now, New release of income tax calculator for the Financial Year 2009-10, Assessment Year has been prepared, You can easily check Due Dates of Advance Tax and Amount of Advance Tax with the help of below income tax Calculator


Click here to Watch Due Dates and auto Calculation of Amount of Advance Income Tax


Instructions:-
  • Recommended Browser is Firefox or Google Chrome
  • Enter your Income/Data in white cell only.
  • In Type Status Code, you have to enter 1 for Individual/Huf, 2 for Partnership Firm and 3 for Company cases
  • In Type Category Code, you have to enter 10 for Man, 11 for Women and 12 for Senior Citizen.
  • Savings can also be filed in Deductions field like as 80C, 80D, 80U, 80G and others etc.
  • Income Tax , Surcharge and cess amount will be calculated automatically.








 Calculate your income tax amount w.e.f. 01.04.2005 or F.Y. 2005-2006 (Click Here)

Non Receipt of tds/tcs certificate Form 16 or 16A

Sunday, March 28, 2010 | comments

Friends,

              In case when you do not receive TDS certificate form 16 or 16A from your employer/deductor.  Keep in mind that it is not your duty of collect form 16 or 16A certificate from you employer/deductor.  It is mandatory duty of  Tax Deductor to issue tax deduction certificate Form 16 or 16A in due time prescribed by income tax department . 

To know time limit for issuing certificate (click here)

Deducted Tax Not Deposited
                There are lot of chances  that the deductor has not deposited tax  to Government Account when we are demanding certificate again and again  and deductor is not issuing certificate. In that case we should  inform PRO or TDS section of income tax department. 
         Secondly, we can take help of  form 26AS, to know that tax has been deposited by  deductor/employer or not. It is really a good function  to know that how much amount has been deposited  in your pan number by any deductor in a financial year.  

Click here to know more  regarding form 26AS or Registration.


Claim of Tax without having TDS Certificate
                                     We can submit return without having  TDS/TCS certificate  16 or 16A mentioning complete detail in return i.e.  TAN Number, TDS amount etc.  If you do not your detail  you can take help of Form 26AS as detailed given above.

Form 16 or 16A from Fvu File
                                       Demo copy for creation of form 16 or 16A form fvu (File Validity Utility)  with in minutes is linked here. Click Here.

                                  


Cost Inflation Index Table/Rate w.e.f. 1981 for Long Term Capital Gain

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The Central Government has notified the Cost Inflation Index for the purpose of long term Capital Gain as follows:




  • Cost Inflation Index Rate w.e.f. 1981 (Click Here)
  • Income Tax Slab/Rate for the Financial year 2009-10 (Click Here)
  • OnLine Income Tax Calculator F.Y. 2009-10, A.Y. 2010-11 (Click Here)

Deduction u/s 80U (for Disability)

Friday, March 26, 2010 | comments

Friends
                     An individual can avail deduction of Rs. 50,000/- (Fifty thousand only)  under section 80U only after providing disability certificate from any medical authority. Only a resident can avail this deduction.  

                     If an individual is effected with any severe disability, amount of deduction u/s 80U will be Rs. 75,000/- (Seventy five thousand only). 

                         w.e.f. 01.04.2010, as per sub-section (1) of section 80U by the Fianance (No.2) Act,209,  for the Financial Year 2010-11 or Assessment Year 2011-12, Deduction of Rs. 75000/- has been increased to Rs. 1,00,000/-.

                         Time to time re-assessment of  disability certificate is also required as mentioned in medical certificate.  Deduction can be provided only for the period as mentioned in the medical certificate.

Other important deductions (click here)

  

Codes relating to e-filling of Income Tax Return

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Friends,

                      As it is already informed that  31 March 2010 is the last date for submission of return relating to Financial Year 2007-2008.   There are some important codes while filing income tax return.  In Income Tax Return, there is column  in return named as "Return filed under Section"  Pl. see Instruction No 9(i).  There are five Choices which is as under :-

1)   11- u/s 139(I)
2)   12- u/s 139(4)
3)   13- u/s 142(1)
4)   14- u/s 148
5)   15- u/s 153(A)

for serial number 1 ,  it is used for when return is submitted in time means Voluntarily  submit on or before the due date. 

for serial number 2,  it is used  when return is submitted after the due date means voluntarily submit after the due time without having any notice from Department of Income Tax.

for serial number 3 and 4 is used for  when an assesses submit his return after getting notice from Income Tax Department 

for serial number 5 is used for returns relates to search cases.

Overall , if  we submit  our individual return relating to F.Y. 2007-08 on 25 March 2010, we will have to select return filed under section code    12- u/s 139(4) otherwise xml file will not be uploaded. 

for reading more regarding to other codes relates to ITR-4 is linked here for download (Click Here)

On Line Income Tax Calculator w.e.f.  01.04.2005 to update (Excel Based) (Click Here)


Last Date for Submission of Income Tax Return

Thursday, March 25, 2010 | comments

Friends

                    In case, you have not submitted your income tax return for the Assessment Year 2008-09 or Assessment Year 2009-10.  You can submit your return upto 31-March-2010.    It is last date for the return relates to Assessment Year 2008-09 or Financial Year 2007-08.

Hurry up, if you have not submitted return till today(i.e. 25 March,2010). 

online Income Tax Calculator (Click here)
To know regarding return or collecting return submission software etc. (Click Here)

Post Office Recurring Deposit (R.D.) Interest Calculator

Wednesday, March 24, 2010 | comments

Some year back, Interest from Saving Bank Account or Interest from Post office R. D. Account were not taxable under Income Tax Act. But now-a-days all interest whether relates to Saving Account or not are taxable for income tax.

The above mentioned interest neither falls in u/s 80L or not Exempt from Income Tax. Therefore, the persons who have made any deposit in Post Office in the shape of Recurring Deposit (R.D.) , should keep in mind to take interest of R.D. in his computation under "Income from Other Sources Head" on yearly basis to avoid any penalty. No doubt it is difficult to calculate for anyone due to it's feature quarterly compound interest. We have tried to make it easy with the help of following calculator.


Excel Based Calculator for R.D. Interest (Click Here)
On Line Excel Based Income Tax Calculator (Click Here)

Dearness Allowance Increased 8%

Sunday, March 21, 2010 | comments

Friends

              Good news for Central Govt. Employees and pensioners that the D.A. has been increased 8% to compensate for price rise.  As usually, this increase will be implemented w.e.f. 01-Jan-2010. 

            The hike would be over the existing rate of 27% of basic pay or pension and the additional instalment of DA would be released with effect from January this year. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be to the tune of Rs 6,969.36 crore per annum and Rs 8,131.20 crore in the financial year 2010-2011. 

              The Cabinet also approved revised cost estimates (RCE) for setting up of six new AIIMS-like Institutions and upgradation of 13 existing government medical colleges under Pradhan Mantri Swasthya Suraksha Yojana PMSSY (Phase I) for an outlay of Rs 9,307.62 crore. The Cabinet Committee on Economic Affairs had earlier approved the scheme for Rs 3,975.99 crore.


Pay Calculator (Click Here)
Income Tax Calculator (Click Here)








Haryana 6th Pay Arrear Calculator (On LIne) Free

Saturday, March 20, 2010 | comments

Friends
Major Updation in Haryana Pay Calculator
Latest Updated on 05 March, 2010

Haryana Government had paid 40% amount out of arrear of 6th Pay Scale Amount in the Financial Year 2008-2009. There is no doubt balance of 60% arrear amount was lying pending for disbursement to Haryana Employees. In the Financial Year 2009-2010, 30% amount has also been allowed to disburse in their employees by Haryana Government.

Keeping in view the above, major updations have been done in pay calculator. Major updations like as 30% amount instead of full amount, Year wise separate sheets such as 2005-2006, 2006-2007, 2007-2008, 2008-2009 etc. have also been added.

Year wise septate sheets are helpful to those who want to bifurcate their income of arrear amount in past financial years. I mean to say helpful to those who want to take benefit of 89(1) rebate in his Income Tax Return.

Features/Qualities of Excel Calculator
  • Free Email registration is necessary at http://fastworking.blogspot.com/
  • Time to time updation will be provided.
  • User's response is awaited.
  • Only white cell are provided to enter Data of Employee.
  • Completely free download of excel 6th Pay Scale Arrear Calculator.
  • Minimum Data entry for Fast Arrear Calculations
  • There may be some complication in online calculator such as selection of pay scale, selection of Months etc. You may also download calculator for offline use after filling below form. All fields in form are mandatory.





Click Here to Download calculator on your desktop.





Click Here to View Income Tax Calculator

Date of Payment/Credit in Income Tax-TDS/TCS

Thursday, March 18, 2010 | comments

Friends
                     To know date of payment/credit  is important while making work of income tax regarding tds/tcs.  There are some questions regarding date of payment.
1)   Tds deposit date is different from Date of Payment or not.
2)   Meaning of  Date of  Payment or Date of Credit.
3)   TDS/TCS  is liable on the basis of Date of Payment or Date of Credit.
4)   What is base for making Quarter for submitting etds/etcs return.

Answers:-
1)    Yes, Tds/Tcs deposit date is quite different from Date of Payment or date of Credit.

2)    Detailed meaning of  date of  payment or credit  is given  below:-
        a)    Date in which Bill Amount booked in Cash Book is called Date of Credit.
        b)    Date in which Bill Paid or Advance given is called Date of Payment.
                                Example :- a)  A paid advance to B on account of advance on 15-April-2010 and receive bill on 05-July-2010 and enter in Cash Book on 10-July-2010.
                              It means Date of Payment will be  15-April-2010 and Date of Credit will be 10-July-2010.

3)     Date for deduction of tds/tcs can not be fixed.  Date of  deduction of tds/tcs will be which ever is lowest in Date of Payment or Date of Credit.  In above example  TDS/TCS will be deducted on  15-April-2010.

4)     Lower between date of Payment or date of Credit is the base in making Quarter for submitting etds/etcs return.  There is no use  of Date of  TDS Deposit date.

New TDS/TCS rates after Budget 2010 (Click Here)
Know procedure of submitting etds/etcs quarterly return (Click Here)
Consolidated  free  income tax calculator w.e.f. 01.04.2005 (Click Here)

Deduction u/s 80G (for Donation)

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Friends

Deduction of Donation Amount 
            While computing total income, amount of donation is also play part of deduction u/s 80G.  Before taking  deduction of  donation amount as deduction the following points are very much important which are given as under:-
1)          What is total income. 
2)          Charitable institution is registered for donation 80G or not. 
3)          Deduction will be 50% or 100%
4)          How much amount is deductable under section 80G   
5)          D.D.O. (Drawing and Disbursement officer) is eligible for allowing deduction or not. 

Point wise clarity :-
1)          Deduction amount can not be excess of 10% of total income.
2)          Donation made in any charitable institution is not allowable u/s 80G. Only institutions having exemption certificate from income tax department are eligible for deduction of  donation amount. 
3)         100% deduction of donation amount is allowable only donation made in Previous Year  in Govt. Relief Fund or any Specified  fund notified by Govt.
4)         Deduction amount can not be excess in 10% of total income
5)         D.D.O. is not eligible for allowing deduction of donation u/s 80G


Tax benefit depends on rate of Tax applicable to the Assessee:- Let us take an illustration. Mr. Bansal an individual and M/s. Jain Pvt. Ltd., a Company both give donation of Rs. 1,00,000/- to a NGO called Satyakaam. The total income for the A.Y. year 2009-2010 of both Mr. Bansal and Ms. Jain Pvt. Ltd. is Rs. 3,00,000/-. The tax benefit would be as shown in the table:
Mr. Bansal (individual)MS. Jain Pvt. Ltd.(Company)
i) Total Income for the F.Year 2008-20093,00,000.003,00,000.00
ii) Tax payable before Donation15,000.0090,000.00
iii) Donation made to charitable organisations1,00,000.001,00,000.00
iv) Qualifying amount for deduction (50% of donation made)50,000.0050,000.00
v) Amount of deduction u/s 80G (Gross Qualifying Amount subject to a maximum limit 10% of the Gross Total Income)30,000.0030,000.00
iv) Taxable Income after deduction2,70,000.002,70,000.00
v) Tax payable after Donation12,000.0081,000.00
vi) Tax Benefit U/S 80G (ii)-(v)3,000.009,000.00
Note :
  • Education Cess & Sec. & Higher Educ. Cess has not been included in working of tax benefit.



Detailed clarity for deduction of donation  u/s 80G  as per income tax Act 1961 is given as under :-


44Deduction in respect of donations to certain funds, charitable institutions, etc.
4580G. 46[(1) In computing the total income of an assessee47, there shall be deducted, in accordance with and subject to the provisions of this section,
48[(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or sums of the nature specified in 49[sub-clause (i) or in] 50[sub-clause (iiia51[or in sub-clause (iiiaa52[or in sub-clause (iiiab)] 53[or in sub-clause (iiie)] 54[or in sub-clause (iiif)] 55[or in sub-clause (iiig)] 56[or in sub-clause (iiiga)] or 57[sub-clause (iiih) or] 58[sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc59[or sub-clause (iiihd)] 60[or sub-clause (iiihe)]61[or sub-clause (iiihf)] 62[or sub-clause (iiihg) or sub-clause (iiihh)] 63[or sub-clause (iiihi)] 64[or sub-clause (iiihj)] or] in] sub-clause (vii) of clause (a)65[or in clause (c)] 66[or in clause (d)] thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and]
(ii) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2).]
(2) The sums referred to in sub-section (1) shall be the following, namely :
(a) any sums paid67 by the assessee in the previous year as donations to
(i) the National Defence Fund set up by the Central Government; or
(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17th day of August, 1964; or
(iii) the Prime Ministers Drought Relief Fund; or
68[(iiia) the Prime Ministers National Relief Fund; or]
69[(iiiaa) the Prime Ministers Armenia Earthquake Relief Fund; or]
70[(iiiab) the Africa (Public Contributions - India) Fund; or]
71[(iiib) the National Childrens Fund; or]
72[(iiic) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of February, 1985; or]
73[(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or]
74[(iiie) the National Foundation for Communal Harmony; or]
75[(iiif) a University or any educational institution of national eminence as may be approved76 by the prescribed authority77 in this behalf; or]
78[(iiig) the Maharashtra Chief Ministers Relief Fund during the period beginning on the 1st day of October, 1993 and ending on the 6th day of October, 1993 or to the Chief Ministers Earthquake Relief Fund, Maharashtra; or]
79[(iiiga) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or]
80[(iiih) any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities.
Explanation.For the purposes of this sub-clause, town means a town which has a population not exceeding one lakh according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or]
81[(iiiha) the National Blood Transfusion Council or to any State Blood Transfusion Council which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks.
Explanation.For the purposes of this sub-clause,
(a) National Blood Transfusion Council means a society registered under the Societies Registration Act, 1860 (21 of 1860) and has an officer not below the rank of an Additional Secretary to the Government of India dealing with the AIDS Control Project as its Chairman, by whatever name called;
(b) State Blood Transfusion Council means a society registered, in consultation with the National Blood Transfusion Council, under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India and has Secretary to the Government of that State dealing with the Department of Health, as its Chairman, by whatever name called; or
(iiihb) any fund set up by a State Government to provide medical relief to the poor; or
(iiihc) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants; or]
82[(iiihd) the Andhra Pradesh Chief Ministers Cyclone Relief Fund, 1996; or]
83[(iiihe) the National Illness Assistance Fund; or]
84[(iiihf) the Chief Ministers Relief Fund or the Lieutenant Governors Relief Fund in respect of any State or Union territory, as the case may be :
Provided that such Fund is
(a) the only Fund of its kind established in the State or the Union territory, as the case may be;
(b) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be;
(c) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or]
85[(iiihg) the National Sports Fund to be set up by the Central Government; or
(iiihh) the National Cultural Fund set up by the Central Government; or]
86[(iiihi) the Fund for Technology Development and Application set up by the Central Government; or]
87[(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or]
(iv) any other fund or any institution to which this section applies; or
(v) the Government or any local authority, to be utilised for any charitable purpose 88[other than the purpose of promoting family planning; or]
89[90[(vi) an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;]
91[(via) any corporation referred to in clause (26BB) of section 10; or]
(vii) the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning;]
(b) any sums paid by the assessee in the previous year as donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified92 by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States;
93[(c) any sums paid by the assessee, being a company, in the previous year as donations to the Indian Olympic Association or to any other association or institution94[established in India, as the Central Government may, having regard to the prescribed guidelines95, by notification in the Official Gazette96, specify in this behalf] for
(i) the development of infrastructure for sports and games; or
(ii) the sponsorship of sports and games,
in India;]
97[(d) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section applies for providing relief to the victims of earthquake in Gujarat.]
(3) [Omitted by the Finance Act, 1994, w.e.f. 1-4-1994.]
98[(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi99[, (via)] and (vii) of clause (a) and in 1[clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof 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 ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1)].
(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :
2[(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 3[* * *] 4[5[***]] 6[or clause (23AA)] 7[or clause (23C)] of section 10 :
8[Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if
(a) the institution or fund maintains separate books of account in respect of such business;
(b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and
(c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;]]
(ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;
(iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste;
(iv) the institution or fund maintains regular accounts of its receipts and expenditure; 9[* * *]
(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 2510 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, 11[12[***]] or is an institution financed wholly or in part by the Government or a local authority; 13[***]
14[(vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commis-sioner in accordance with the rules15 made in this behalf 15a[and]
16[***]]
15a[(vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,
(a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and
(b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.]
17[(5A) Where a deduction under this section is claimed and allowed for any assessment year in respect of any sum specified in sub-section (2), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other assessment year.]
18[(5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply.]
19[(5C) This 20[section] applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely :
(i) it is approved in terms of clause (vi) of sub-section (5);
(ii) it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat;
(iii) the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat on or before the 31st day of March,21[2004];
22[(iv) the amount of donation remaining unutilised on the 31st day of March, 21[2004] is transferred to the Prime Ministers National Relief Fund on or before the 31st day of March, 21[2004];]
(v) it renders accounts of income and expenditure to such authority23 and in such manner as may be prescribed24, on or before the 30th day of June, 21[2004].]
Explanation 1.An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5).
25[Explanation 2.For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely :
26[(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 1127[section 12 or section 12A];
(ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 27[or section 12] is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern.]]
Explanation 3.In this section, charitable purpose does not include any purpose the whole or substantially the whole of which is of a religious nature.
28[Explanation 4.For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette29, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.]
30[Explanation 5.For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.]
(6) 31[* * *]

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