CAN EMPLOYER GIVE 80G DEDUCTION IN FORM 16?

December 17, 2021
MSAadmin

In organizations, an employer has to deduct TDS on salaries and then pay the salary amount. The amount deducted as TDS by the employer will reflect in Form 16 along with Chapter VI-A deductions claimed by the employee.

Every employee has to submit investment proofs to employer for computation of income tax as per the declaration made. However, in case an employee is claiming 80G, the employer can provide deduction only in the following cases:

  1. Without any Limit

  • 100% deduction of the amount donated

  • 50% deduction of the amount donated

Only if the donation is made to Funds mentioned under above heads the employer can provide deduction.

In case of Donation made to institutions mentioned under below heads

  1. Subject to Maximum Limit of 10% of Adjusted Gross Total Income

  • 100% deduction of the amount donated

  • 50% deduction of the amount donated

The Employer in not entitled to provide deduction in Form 16. However, the assessee can claim deduction under sec 80G while Filing their Income Tax Return.

Do you have more queries regarding 80G in Form 16? If yes then get in touch with us.

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