As per Sec 80GGB deduction shall be allowed in respect of any contribution, as referred to in Sec 293-A of the Companies Act,1956 made by Indian Company to any Political Party or an Electoral Trust
Restrictions regarding political contribution: Section 293-A of the Companies Act
1956 deals with prohibitions and restrictions regarding political contribution. A non-
Government company which has been in existence for not less than three years may
contribute any amount or amounts directly or indirectly to any political party or for any
political purpose to any person provided that the aggregate of the amounts which may be
so contributed by a company in any financial year shall not exceed 5% of its average net
profits determined in accordance with the provisions of Section 349 and 350 during the
three immediately preceding financial years.
Hence, in the light above provision of Co's Act & IT Act. i think deduction is allowed under Sec80GGB provided the contribution is made for Political Purpose to Trade union which is joined to a Political Party.
Suggestion are welcome
Total thanks : 1 times