Any donation made for scientific research or rural development is eligible for deduction under section 80GGA of the Income Tax Act.
Deduction u/s 80GGA can be claimed by all individuals except those with income from business/profession.
Individuals with income from business or profession can claim deduction for the same u/s 35.
Mode of donation
Contributions can be made in the form of cash, cheque or draft. However, cash donations made in excess of Rs. 10,000 are not eligible for deduction.
Amount of deduction
The whole amount donated, i.e., 100% of amount donated qualifies for deduction. There is no cap or upper limit on the deduction amount.
Types of institutions prescribed u/s 80GGA
The following institutions can get you 100% deduction on the amount donated to them by you:
- Donation made to an approved Scientific Research Association, university, college, or other institution to be used for scientific research.
- Donation made to an approved university, college or other institution for statistical research or research in social science.
- Donation made to an association or institution engaged in any approved programme for rural development, or which is engaged in training of persons for implementation of rural development programmes, or to a notified rural development fund or to the notified urban poverty eradication fund.
- Donation made to a public sector company or a local authority, or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme.
A person having any income taxable under the head "Profits and gains from business or profession” can claim similar deduction under section 35 of the Act.
Frequently Asked Questions
What is the minimum donation limit to get tax deduction?
Any sum paid for the specified purpose can be claimed as tax deduction u/s 80GGA.
What is a tax exemption certificate?
To claim deduction u/s 80GGA, you must take a tax exemption certificate from the entity to which you made the donation.
I am an NRI. Will I get tax exemption on my donation?
Yes, NRIs are eligible for getting tax deduction for any donation qualifying u/s 80GGA.
Can I claim donations made to political parties under this section?
Donations made to political parties can be claimed but not under this section. Section 80GGC offers tax deduction for donations made to political parties. To know more, click here.
Can I claim deduction for donation made to charitable institutions?
Yes but not under this section. Section 80G allows deduction for donation made for scientific research. To know more, click here.