Deductions Under Section 80GGA of Income Tax Act
November 23, 2017
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Section 80GGC of Income Tax Act offers tax exemption to individuals who has made donations to political parties. Check eligibility and deduction limit here.

Deductions u/s 80GGC for Donations to Political Parties

You may not know this but supporting politics can also reduce the burden of your taxes. Under section 80GGC, any donation made to political parties is exempt from tax if it satisfies certain conditions.

Eligibility

  • Deduction u/s 80GGC is only available to an assessee (including individuals), being any person other than local authority and artificial juridical person under section 80GGC. (i.e., non-corporate assessees). Assessee should not be an Artificial Juridical Person who receives funds from the government.
  • Corporates cannot avail deduction under this section, they can claim similar deduction u/s. 80GGB

Deduction limit

  • Maximum deduction allowed under section 80GGC is 100%. It means that your whole contribution is fully eligible for tax deduction.

Mode of contribution

  • To be eligible for tax deduction, the contribution should not be made in the form of cash. Donation made in any other form is eligible for deduction.

Donation made to following entities is eligible for deduction

Donations made to the following two types of entities qualifies for 100% deduction:

  • Donation made to an electoral trust.
  • Donation made to a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).

Frequently Asked Questions:

Can I claim donations made to charitable institutions under this section?
Donations made to charitable institutions can be claimed but not under this section. Section 80G offers tax deduction for donations made to political parties. To know more, click here.

Can I claim deduction for donation made to entities in scientific research?
Yes but not under this section. Section 80GGA allows deduction for donation made for scientific research. To know more, click here.

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