Tax exemptions sought on donations

Hyderabad
The state government on Wednesday announced that 100 per cent tax exemption could be claimed on donations given to the Chief Minister’s Relief Fund to help the flood victims.
The revenue minister, Mr Dharmana Prasada Rao, told mediapersons that the exemption could be availed under 80 (G). The donors can also avail the online facility at http://cmo.ap.gov.in/cmrf and make payments through debit and credit cards, he said.
Under 80 (G) the donation will be deducted from the gross taxable income and tax will be calculated on the remaining amount.
For instance, a person earning Rs 10 lakh per annum has to pay a tax of Rs 1.79 lakh in normal circumstances. If a donation of Rs 10,000 is given to the CMRF, the person will get a tax benefit of Rs 3,000.
“If the donor decides to respond to the calamity and anyway give financial assistance at his level, the 100 per cent exemption under 80 (G) will give some tax benefit,” said Mr Giridhar Toshniwal, a chartered accountant.
The revenue minister also announced that the kin of the flood victims would get Rs 1 lakh from the Prime Minister’s Relief Fund in addition to Rs 2 lakh already announced by the state government. He said the state would also provide Rs 10,000 for loss of cattle.
The minister said the loss incurred in the energy sector because of damage to substations and poles was Rs 236.79 crore.
Power has been restored fully in Kurnool district and would be done in Mahbubnagar by Thursday evening. There were 179 breaches on roads out of which 50 were already restored.
Mr Prasada Rao said the government allotted Rs 75 crore for roads, Rs 36 crore for rural water supply and Rs 40 crore to municipal administration.