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Recently, a payroll manager in a customer organization asked us if his organization can accept information on charitable donations made by employees for calculating deduction under Section 80G of the Income Tax Act. Let us take a look at the conditions that payroll managers should consider while calculating deduction under Section 80G.
1. Consider only specified donations.

According to Section 80G, donation to funds and charitable institutions, which have obtained approval from the Income Tax Department, can be considered for calculation of deduction. However, the Income Tax Department has specified that an employer can accept information on only certain donations (such as those to The Prime Minister’s Drought Relief Fund) for the sake of calculating deduction on salary. For other donations, employees should seek tax relief in their tax return filed with the Income Tax Department and cannot route the same through the employer.

In respect of section 80G, 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.

Any donation to a fund/institution not featured in list specified by the Income Tax Department (presented in the above page) should not be considered by the employer for Section 80G deduction calculation.

2. Check proof of donation.

Even if the donation pertains to a fund/institution which can be considered by the employer, please scrutinize the proof of donation in order to check the veracity of the donation. Only donations in cash should be considered. In addition, the donation should have been made in the year in which the deduction is sought.

3. Apply the correct deduction percentage.

Please apply the correct percentage (50% or 100%) as specified by the Income Tax Department for each of the donations while calculating the extent to which the donation can be considered for deduction.

4. Limit on deduction under Section 80G.

For all donations that an employer can consider for calculation of deduction, there is no limit on the total deduction that can be claimed under Section 80G. For example, employees can claim deduction under Section 80G to the extent of even their total income (leading to zero taxable income).

When employees claim deduction under Section 80G by submitting information on donations directly to the Income Tax Department, the aggregate deduction on account of some of the donations is limited to 10% of the employee’s “Gross Total Income.” The term Gross Total Income is defined in the Income Tax Act. Employees need to know for which of the donations the 10% limit is applicable when they seek tax relief under Section 80G in their income tax return.


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PME Due Date

Master Circular No. 25

Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974

Subject: Implementation of the Recommendations of the Visual Sub-Committee.

6. Periodical re-examination of serving Railway Employees:

6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:

6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.

Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.

(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.

(b) Absence from duty for a period in excess of 90 days.

(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.

If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.

Ammendment: It was ammended in 1993 as below

Age Group PME Due

Age 00-45 every 4yrs

Age 45-55 every 2yrs

Age 55-60 every year
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you

6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.