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Donation under section 80GGB & 80GGC to Political Parties & Electoral Trust

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See the related post: Deductions under Chapter VIA

Deduction under section 80GGB

Deduction u/s 80GGB- for contributions made to Political parties registered u/s 29A or Electoral Trust etc.

 

Who can claim deduction u/s 80GGB- It is available for all Indian Companies.

 

How much deduction amount can be claimed u/s 80GGB-

There is no cap or upper limit for the deduction under Income tax Act, but under the companies act, companies can contribute 7.5% of their average net profits of the past three financial years. It is mandatory for companies to disclose total contributions made by them u/s 182 in their profit & loss account with the name of political party. If electoral bonds are used then mentioning the name of the party is not required.


The deduction is allowed 100% i.e. whole amount donated qualifies for deduction.

Exception -

The following entities are not allowed to contribute to political parties:
Any company with younger than 3 years
or
A government company;

Mode of Donation-

The donation must be paid through cheque/draft/pay order etc. not in cash.
 

Deduction under section 80GGC

Deduction u/s 80GGC- for contributions made to Political parties registered u/s 29A or Electoral Trust etc.


Who can claim deduction u/s 80GGC- It is available to an assessee (Including an Individuals) being any person other than local authority and artificial judicial person i.e. non corporate assessee.


How much deduction amount can be claimed u/s 80GGC-

There is no cap or upper limit for the deduction, the deduction is allowed 100% i.e. whole amount donated qualifies for deduction.


Mode of Donation-

The donation must be paid through cheque/draft/pay order etc. not in cash.

 
See the related post : How to E-file Income Tax Return



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