Radhika aged 63 years, has gross total income of ₹7,75,000 comprising of income from house property and other sources. She has made the following payments and investments : Premium paid ₹20,000 to insure the life of her

Computation of Total Income of Radhika for AY 2021-22 Particulars Amount (₹) Amount (₹) Gross Total Income 7,75,000 Less: Deduction u/s 80C Life insurance premium paid for insurance of major daughter (Maximum 10% of the assured value of ₹1,80,000 as the policy is taken after 31.03.2012) 18,000 Deduction u/s 80CCC in respect of LIC pension fund 60,000 (78,000) Less: Deduction u/s 80D - Medical insurance premium in respect of self and spouse (26,000) Less: Deduction u/s 80G (working note) (91,050) Total Income 5,79,950 Working Note: Calculation of Deduction u/s 80G Particulars Donation (₹) % of Deduction Deduction u/s 80G (₹) National Children's Fund 25,000 100% 25,000 Jawaharlal Nehru Memorial Fund 25,000 50% 12,500 Approved institution for promotion and family planning [Approved Institution is assumed as Govt. / Local authority] 40,000 100% subject to 10% of qualifying limit 40,000 Public charitable trust 1,50,000 50% subject to 10% of qualifying limit 13,550 91,050 Adjusted total income = Gross Total Income - Amount of deduction under section 80C to 80U except section 80G i.e., ₹6,71,000. In this case ₹67,100 being 10% of adjusted total income is the qualifying limit, in this case. Firstly, donation of ₹40,000 to approved institution for family planning qualifying for 100% deduction subject to qualifying limit, has to be adjusted against this amount. Therefore, donation to public charitable trust qualifying for 50% deduction, subject to qualifying limit is adjusted. Hence, the contribution ₹1,50,000 to public charitable trust is restricted to ₹27,100 (being ₹67,100-40,000) 50% of which would be the deduction under section 80G. Therefore, the deduction under section 80G in respect of donation to public charitable trust would be ₹13,550 which is 50% of ₹27,100.