Donation to Political Parties under Section 80GGC

Text of the Section 80GGC of the Income Tax Act

In computing the total income of an assessee, being any person, except local authority and every artificial juridical person wholly or partly funded by the Government, there shall be deducted any amount of contribution made by him, in the previous year, to a political party or an electoral trust:

Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.

Explanation: For the purposes of sections 80GGB and 80GGC, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).

Features of Section 80GGC

1. Any amount (No limit) contributed to a political party is allowed as a deduction from total income
2. Deduction is allowed only when a political party is registered under section 29A of the Representation of the People Act, 1951 (43 of 1951)
3. No deduction shall be allowed for the amount contributed in cash
4. Amount contributed till 31st March is allowed as deduction in the same financial year

Eligibility Criteria under Section 80GGC

These entities are not allowed a deduction of the amount contributed

1. Local authority
2. Every artificial juridical person wholly or partly funded by the Government e. government organization is not eligible for deduction under this section
3. Companies cannot avail of deductions under this Section (Section 80GGB)

Procedure to avail of Deductions under Section 80GGC

1. Firstly, amount is contributed through a legitimate method of banking by the person who will claim a deduction in the ITR.
2. When donation receipt has received the details of the same is to be filled while filing ITR
3. Assessee is required to keep that receipt for future reference also

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