Section 80G ceiling computation excludes no annuity deposit relief under section 280-O, preserving deduction entitlement.

For computing the ten per cent ceiling under section 80G(4), gross total income under section 80B(5) is taken as income computed under the Act before Chapter VI-A deductions, and it is reduced only by the items expressly mentioned in section 80G(4). Annuity deposit relief under section 280-O is outside Chapter VI-A and is not among the specified reductions, so it cannot be excluded from the ceiling computation. The stated legal position therefore permits section 80G deduction to be worked out without reducing the amount allowed under section 280-O.

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Issues: Whether, for the purpose of the ceiling under section 80G(4), the assessee's gross total income had to be computed by reducing the amount of annuity deposit allowed under section 280-O, or whether the gross total income under section 80B(5) had to be taken without such reduction.

Analysis: Section 80B(5) defines gross total income as the total income computed in accordance with the Act before deductions under Chapter VI-A or section 280-O. Section 80G(4), while imposing the ten per cent ceiling, requires reduction only of income on which tax is not payable and amounts deductible under other provisions of Chapter VI-A. It does not refer to section 280-O. Since annuity deposit relief falls outside Chapter VI-A, it cannot be deducted while computing the ceiling under section 80G(4).

Conclusion: The ceiling for deduction under section 80G(4) was to be computed without reducing annuity deposit under section 280-O, and the assessee was entitled to deduction on that basis.

Ratio Decidendi: For computing the limit under section 80G(4), gross total income under section 80B(5) is reduced only by the amounts expressly specified in section 80G(4), and deductions under section 280-O cannot be excluded from that computation.

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