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Summary of Chapter VI A - Part 1

on 09 September 2013



Applicable for F.Y. 2012-13

Sections- from 80A to 80GGC

Deduction under Chapter-VIA is not allowed against following incomes:

•  Long Term Capital Gains.

• Short Term Capital Gains u/s.111A

• Winnings from lotteries, crossword puzzles – Sec.115BB

• Income from race, including horse race – Sec.115BB

• Income from card game or other game of any sort – Sec.115BB

• Income from gambling or betting of any form – Sec.115BB

• Income of a non-resident – Sec 115A(1)(a), 115AB, AC, ACA, AD, BBA, BBD

SECTION 80A- Where, in computing the , any deduction is admissible u/s 80G / 80GGA / 80GGC / 80HH / 80HHA / 80HHB / 80HHC / 80HHD / 80I / 80IA / 80IB / 80IC /

80ID / 80IE / 80J / 80JJA, NO DEDUCTION under the same section shall be made in computing the total income of a member of the AOP or BOI in relation to the share of such member in the income of AOP or BOI.

SECTION 80A(4)-Where the assessee has taken deduction u/s 10A / 10AA / 10B / 10BA or under any provisions of heading C of this chapter against any amount of profits and gains of an undertaking or unit or enterprise or eligible business for any assessment year,

• He is not entitled to deduction in respect of and to the extent of such profit & gains under of this act for such A.Y.

• The allowable deduction cannot exceed the profits and gains of such undertaking or unit or enterprise or eligible business as the case may be.

SECTION 80A(5)-Deduction under section 10A / 10AA / 10B /10BA or any provisions of heading ‘C’ of this chapter (deduction in respect of certain income) is available only if the assessee claims it in his Return of Income.

SECTION 80A(6)-Where, any goods or services, held for eligible business are transferred (sold) to a normal business by the assessee, or vice-versa, the said transfer should be at market value.

If in the books of the eligible business, the transfer is not recorded at market value, then the profits eligible for deduction shall be computed by adopting market value for such goods or services.

MARKET VALUE in relation to any goods or services means,The price that such goods or services would fetch if these were sold or acquired by the undertaking or the unit or the eligible business in or from the open market, subject to statutory or regulatory restrictions if any.

SECTION 80A(7)-If the assessee avails the deduction under any of the provisions of this chapter in respect of specified business, he is not eligible to avail the deduction u/s 35AD.

SECTION 80AB-Deduction in respect of income u/s 80IA,80IB, 80IC, 80ID, 80IE, 80LA, 80QQB, 80RRB is allowed ONLY TO THE EXTENT SUCH INCOME IS INCLUDED  in the Gross Total Income of the assessee.

SECTION 80AC-Deduction u/s 80IA, 80IAB, 80IB, 80IC, 80ID and 80IE is allowed only if the return of income is filed on or before the due date as specified in Sec. 139(1).

Deductions are allowed if it is accompanied by relevant audit report in prescribed form, by anChartered Accountant.

SECTION 80C-Eligible Assessee-An individual, A Hindu undivided family.

Under this section max amount of Rs. 1lacs can be deducted from the Gross total income of the assessee (As Read with Sec.80 CCC, 80 CCD)

Eligible investments/contributions-

• Life Insurance / annuities-

• Actual amount paid towards Life insurance policy.

• Amount contributed towards a contract for a deferred annuity.

• Amount of deduction from the salary payable by or on behalf of the Govt. to any individual in accordance of the conditions of his service, for the purpose of securing a deferred annuity of making provisions for his spouse or children not exceeding one fifth of the salary.

• The deduction is restricted to 20% of the actual capital sum assured of life insurance policy other than a contract for a deferred annuity, if the policy is issued on or before 31.03.2012.

New amendment-If the policy is issued on or after 1.4.2012-

The deduction is restricted to 10% of actual capital sum assured of life insurance policy other than a contract for a deferred annuity,

Explanation to Sec.80C(3A)

Where the policy is issued on or after 1.4.2012, ‘Actual capital sum assured’ shall mean the minimum amount assured under the policy, without taking into account:

i. The value of any premium agreed to be returned OR

ii. Any benefit by way of bonus or otherwise over and above the sum actually assured which is to be or may be received under the policy by any person


• Contribution to Unit Linked Insurance Plan,1971(ULIP)

•Contribution to notified annuity plan of LIC of India or any other insurer

• Contribution to Unit Linked Insurance Plan of the LIC mutual fund notified u/s.10(23D)

Employee welfare fund-

• Any contributions by an individual to which PF Act, 1925 applies;

• Contribution to PPF

• Contribution by an employee to a RPF;

• Contribution by an employee to an approved superannuation fund

Central Govt/ Post Office savings-

• Subscription to any notified security of the CG;

• Investments in National Saving Certificates;

• Subscription to any notified savings certificate;

• Subscription to any units of a mutual fund referred to u/s10(23D) or UTI and notified by the CG.

• Contribution by an individual to a pension fund set by a mutual fund notified u/s 10(23D) or UTI as CG may specify.

• Term Deposit for a period of not less than 5 years with a scheduled bank in accordance with a scheme framed by the CG.

• Subscriptions to bonds issued by National Bank for Agriculture and Rural Development (NABARD).

• Subscription to any APPROVED UNITS OF MUTUAL FUND notified in Sec.10(23D) if proceeds of such issue are utilized in investment in infrastructure company

• 5 years term deposit in an account under post office time deposit scheme.

• Deposit in an account under the Senior Citizens Savings Scheme [SCSS]

• Deposit in National Housing Bank (Tax Saving) Term Deposit Scheme, 2008

Eligible investment-Housing

• Repayment of any loan borrowed for the purpose of purchase or construction of residential house property, the income of which is chargeable to tax under ‘Income from House property’

• It means deduction is available only when the construction is completed and assessee gets the possession of the property.

• Deduction is also allowed for any expenditure incurred towards stamp duty, registration charges for transfer of the house.

• Repayment of principal on loan borrowed for residential house (whether let out or self occupied) only is entitled for deduction. Repayment of loan taken for commercial property is not allowed for deduction.

• Where the loan is availed for any addition, alteration, repair or renovation no deduction can be claimed for principal repayment.

• Repayment of loan borrowed from relatives, friends, non-specified employer/ institutions is not eligible for deduction.

Deduction under this clause is not allowed for following payments:

• The admission fee, cost of shares and initial deposit which a shareholder of a company or a member of a co-operative soc has to pay.

• The cost of any addition, alteration, renovation or repair of, the house property which is carried out after the completion certificate is received or after the property or any part of it is occupied.

• Any expenditure for which deduction is allowable u/s 24.

• Subscription to any approved equity or debentures forming part of any eligible issue of capital by a public company or public financial institution which is engaged in infrastructure development

• Tuition fees Paid to -University /college/ school/ education institution in India-for Full time education. Deduction is available for any two children of the assessee.

• Deduction as allowed for the payment made for “Tuition Fees” only.

• Deduction is not allowed for any kind of donation or payment made for any other purpose. e.g. Uniform Fees, Library Fees etc.

Other eligible investments-

• Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institution.

• Subscription to any deposit scheme or as a contribution to any such fund set up by the National Housing Bank.

• Deposit with a public sector company engaged in providing long term finance for construction or purchase of houses in India for residential purpose. OR

• Deposit with any authority constituted in India- For the purpose of dealing with and satisfying the need for housing accommodation OR For the purpose of planning, development or improvement of cities, towns and villages OR For both


1. If the assessee transfers the house property, in respect of which deduction has been claimed, before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, no deduction shall be allowed in the previous year in which the house property is transferred. The aggregate deduction allowed in the past years shall be deemed to be the income of the assessee for the previous year in which the house property is transferred.

2. Similar shall be the tax treatment in the case of subscription to shares or debentures in respect of which deduction has been claimed under this section, and sold within period of 3 years from the date of acquisition.

3.Any amount including interest accrued withdrawn out of the deposits in senior citizen savings scheme or Post Office Time Deposit Scheme before the expiry of 5 years from the date of deposit shall be liable to tax. However, in case of demise of the assessee and the legal heir/nominee receives such sum the same shall not be subject to tax. Withdrawal of interest on these deposits will not be liable to tax provided it is included in the total income of the depositor in the previous year.

4. In case the term deposit is jointly held, deduction u/s.80C shall be available only to the first holder of the deposit. Further, the term deposit in respect of which deduction was claimed, shall not be pledged to secure loan or as security to any other asset.

5.No sectoral limits for various items specified u/s.80C. Therefore, an assessee may opt to invest even in only one item say insurance premium. However, it shall not exceed Rs.1,00,000 for the year.

6. In respect of deferred annuity plan, the insured shall not receive the annuity by cash payment.

7.Tuition fee paid for part-time education of children does not qualify for deduction. Similarly, tuition fee payments made for institutions situated abroad are not entitled for deduction.

Section 80CCC

Deduction in respect of contribution to certain pension funds

Eligible Assessee –only Individual

Following contributions qualify for deduction under this section only if the payment is made out of the income chargeable to tax.

Contribution made to annuity plan (excluding bonus or interest accrued or credited to the account) issued by:

1. LIC of India or

2. Any other insurer approved by the IRDA

The pension amount received by the assessee or his nominee from this fund is taxable in the hands of the assessee or his nominee, in the year of receipt.

If the policy is surrendered before its maturity, the surrender value including bonus /interest shall be taxable in the year of receipt.

80CCD-Deduction in respect of contribution to pension scheme of central government or scheme as notified-

Eligible Assessee- Individual

Nature of Income & Quantum of Deduction

Nature of Income                                                             Limit

Salary income                                                                 10% of salary

Other Income                                                                  10% of Gross Total Income

Salary includes dearness allowance if the terms of employment so provide, but excludes all other allowances and perquisites.

Deduction under this section is available even if the assessee makes contribution under the pension scheme by his employer so long as the contribution does not exceed 10% of his salary in the previous year.

Aggregate amount of deduction u/s 80C, 80CCC & 80CCD is restricted to Rs.1,00,000/-

New Section-80CCG-Rajiv Gandhi Equity Savings Scheme

• This section has been introduced to provide for a one-time deduction to a resident individual who has acquired listed equity shares in a P.Y. in accordance with the scheme notified by the CG.

• Deduction would be, the lower of – 50% of amount invested in such equity shares OR Rs.25,000.

• The maximum deduction of Rs.25,000 would be available on investment of Rs.50,000 in such listed equity shares

Conditions for claiming deduction:

• Gross Total Income of the assessee for relevant A.Y. Rs.10 lakhs or less  &

• The assessee should be A new retail investor as per the requirement specified under the notified scheme.

• The investment should be made in such Listed shares as may be specified under the notified scheme.

• The minimum lock-in period in respect of such investment is 3 yrs  from the date of acquisition in accordance with the notified scheme.

80D-Medical insurance premia

Eligible Assessee-An individual, A Hindu undivided family

Deduction is available if the insurance is made on the health of following persons:

Assessee: Insured person

Individual: Self, spouse, dependent children, and parents

HUF: Any family member

Quantum of deduction


Mediclaim premium paid in respect of

Max Deduction

u/s 80D

Self, spouse &

Dependent children


dependent or not  

No one attained 60 years

Rs. 15,000

Rs. 15,000

Rs. 30,000

Assessee & his family

less than 60 years &

parent is a senior


Rs. 15,000

Rs. 20,000

Rs. 35,000

Assessee and the

parent attained the

age of 60 years

Rs. 20,000

Rs. 20,000

Rs. 40,000

Deduction is available if the payment is made by any mode (including credit card), other than cash under:

Medical insurance scheme of the General Insurance Corporation approved by the CG OR Central Govt. health scheme OR Any other insurer approved by the IRDA


• Deduction to the extent of Rs.5,000/- shall be allowed in respect payment made on account of preventive health check-up during the P.Y. -For Self, spouse, dependent children or parents.

• The said deduction of Rs. 5,000/- is within the overall limit of Rs.15,000 or Rs. 20,000, as the case may be.

• The payment ,for this purpose only, may be made by any mode, including cash.

Sec 80DD-Maintenance including medical treatment of a dependant with disability

Eligible Assessee – A resident in India -An individual and  A Hindu undivided family

• Deduction is allowed in respect of -Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent with disability.  OR

• An amount paid or deposited by the assessee under any scheme of LIC or any other insurer or the administrator or the specified company and approved by the Board for the maintenance of dependant with disability.

• Amount of Deduction Rs. 50,000/- irrespective of the expenditure incurred or deposit made And Rs.1,00,000/- where the dependant is a person with severe disability

Conditions for deduction:

• The scheme provides for annuity payment or lump sum amt for the benefit of the disabled dependent, in the event of the death of the assessee.

• The assessee nominates either dependant with disability or A trust or any other person to receive the payment on his behalf, for the benefit of the dependant with disability.

• If the disabled dependant predeceases the individual or the member of HUF in whose name subscription is made, the amount deposited shall be deemed to be the income of the assessee in the year in which such amount is received.

• The assessee claiming a deduction shall furnish a copy of the certificate issued by the medical authority along with the return of income u/s 139 in respect of the AY for which the deduction is claimed.

Dependent-Individual – The spouse, children, parents, brothers & sister of the individual or any of them & HUF – A member of the HUF

Dependent wholly or mainly on such individual or HUF- For his support and maintenance and who has not claimed any deduction u/s 80U.

Disability means-Blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation, mental illness, autism, cerebral palsy and multiple disability.

Sec 80DDB- Deduction in respect of medical treatment etc.

Eligible Assessee-A resident in India- An Individual  & A HUF

The deduction is allowed for- Any amount actually paid for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the board for-

Diseased person- Assessee

Himself or Dependent- An individual

Any member of the HUF- A HUF

Deduction would be, the lower of-

The amount actually paid in the previous year OR Rs.40,000 (Rs.60,000 if the person is a senior citizen i.e. a resident individual of the age of 60 years or more)

Assessee: Dependant

An individual: Spouse, children, parents,brothers and sisters

A HUF: A member of the HUF

Who is wholly or mainly dependent  on the assessee for his support and maintenance.

Conditions for deduction:

• The assessee should posses and produce on demand a certificate in Form no.10-I,from  a neurologist, an oncologist, a urologist,a hematologist, an immunologist or such other specialist, as may be prescribed, working in a Govt. hospital, including approved hospitals for the treatment of Govt. servants.

• The deduction shall be reduced by the amt received, if any, under an insurance policy or reimbursed by an employer, for the medical treatment of the assessee or the dependant.

Sec 80E-

• Eligibility-Individual

• Quantum-100% of the interest paid on loan taken without any monetary ceiling limit.

• The assessee can claim the amount of interest in the initial assessment year & carry forward upto 7 assessment yrs.

Terms & Conditions –

• The amount is paid by the assessee out of his income as interest on loan taken for his higher education or for his relative’s higher education.

• Relative means spouse, children of that individual or the student for whom the individual is the legal guardian Sec.80 R(3)(e)


• Higher education  means any course of study pursued after passing the Senior Secondary examination or its equivalent from any school, Board or university recognized by the Central Government, State Government, Local Authority or by any other authorized authorities.

• Any amount paid towards interest  on loan borrowed from any financial institution or any approved charitable institution for the purpose of pursuing higher education is deductible.

Section 80EE-Deduction in respect of interest on loan taken for residential house property

Inserted by Finance Act, 2013 w.e.f. 1-4-2014

Eligible Assessee -Individual

Conditions to be fulfilled for availing the deduction under this section:

[a] Assessee does not own any residential property on the date of sanction of loan.

[b] Value of the residential property does not exceed Rs.40 lacs.

[c] The amount of loan sanctioned for acquisition of residential house does not exceed Rs.25 lacs.

[d] The loan has been sanctioned by the financial institution during the period   01.04.2013 – 31.03.2014. Maximum amount of deduction under this section is Rs.1 lac

[e] Assessee is not supposed to claim deduction under any other section of the Income Tax Act, 1961. Thus, an interest amount deductible u/s 24(b) to the extent of Rs.1,50,000 for self occupied property is untouched.

[f] Balance Interest above Rs.1,00,000/- can be carried forward to the next Assessment Year.

This deduction is over and above Rs.1.50 lacs as allowed u/s 24(b).

In other words, an assessee can claim total Rs.2.50 lacs as deduction- u/s 24 (b) Rs.1.50 lacs+u/s 80 EE Rs.1.00 lacs=Total Rs.2.50 lacs

For Ex: If total interest works out to Rs.2.75 lacs, then remaining portion of Rs.0.25 lacs is carried forward and deductible in AY 2015-2016

This is a beneficial provision to the assessee.

Legislative intent: To rationalise outflow of an assessee i.e. assessees should afford to acquire a property who are FIRST TIME BUYERS.

Section 80G-Deduction in respect of donations to certain funds, charitable institutions etc.

Eligible Assessee-Any assessee

Conditions for claiming deduction:

• The donation should be of a sum of money and not in kind.

• The donation should be made to specified funds / institutions.

• If the amount of donation exceeds Rs.10,000,it must be paid by any mode other than cash- Sec.80G(5D)

Funds /institutions eligible to 100% deduction without any limit:

1. PM’s National Relief Fund

2. PM’s Armenia Earthquake Relief Fund

3. The Africa (Public Contribution-India) Fund

4. The National Foundation for Communal Harmony

5. A University or any educational institution of national eminence as may be approved

6. The national illness assistance fund

7. Any Zila Saksharta Samiti constituted for the purpose of improvement of primary   education in villages and towns and for literacy activities

8. National Blood Transfusion Council or to any State Blood Transfusion Council

9. Any fund set up by a State Govt. to provide medical relief to poor

10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the for the welfare of the past and present members of such forces or their dependants

11. The Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union Territory

12. The National Sports Fund to be set up by the Central Govt.

13. The National Cultural Fund set up by the Central Govt.

14. The Fund for Technology Development and Application setup by the Central Govt.

15. The National Relief Fund

16. Any fund set up by the State Govt. of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat

17. National Trust for welfare of persons with Autism, Cerebral Palsy, Mental Retardation and multiple disabilities under the relevant Act of 1999

18. Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996

19. Maharashtra Chief Minister’s Earthquake Relief Fund

Name of the fund or institution eligible to unrestricted 50% deduction without any limit-

1. Jawaharlal Nehru Memorial Fund

2. PM’s Drought Relief Fund

3. The National Children’s Fund

4. Indira Gandhi Memorial Trust

5. Rajiv Gandhi Foundation

Name of the fund or institution eligible for 100% of the restricted amount-

1. Contribution made by a company as donations to the Indian Olympic Association or to any other Association or institution established in India for the development of infrastructure for sports and games or for the sponsorship of sports and games in India notified by the Central Govt. in the official gazette.

2. Govt. or local authority approved institution / association for promotion of family planning

Name of the fund or institution eligible for 50% of the restricted amount-

1. Renovation of notified temple mosque, church or gurudwara or any other notified place of national importance

2. The Govt. or any local authority, to be utilized for any charitable purpose other than a purpose of promoting family planning

3. Any corporation established by Govt. for promoting interest of scheduled class/ scheduled tribe/ backward class

4. Any authority set up for providing housing accommodation or town planning

5. Any approved public trust or institution

The restricted amount referred earlier (or the qualifying amount)= 10% of the “adjusted gross total income”

Thus, total deduction for ‘donations eligible for 100% or 50% of the restricted amount’ cannot exceed amount equal to 10% of the adjusted GTI.

Out of the maximum permissible deduction priority is to be given to deductions qualifying for 100% restricted deductions and thereafter the remaining for 50% restricted deductions

Computation of ‘Adjusted Gross Total Income’

Step 1

Particulars                                                                                           Rs.

Gross Total Income                                                                           XXXX

Less: a) Deductions under chapter VIA, except u/s.80G                     XX

Less: b) Long Term Capital Gain – Sec 112                                        XX

Less: c) STCG on listed securities – Sec 111A                                    XX

Less: d) Income of non-residents chargeable to tax in

respect of dividend, royalty – Sec 115A, Units – sec. 115AB,

Bonds – sec. 115AC,Securities – sec. 115AD                                     XX

=Adjusted Gross Total Income                                                            XXX

Computation of allowable amount of Donation:

Step 2: Compute 10% of adjusted total income

Step 3: Compute actual donation qualifying for restricted deduction (50% or 100% as the case may be)           

Step 4: Lower of Step 2 or Step 3 is the maximum permissible deduction

Step 5: The maximum permissible deduction is given first for deductions qualifying for 100% restricted deductions and thereafter the remaining for 50% restricted deductions:

• The trust/ fund must satisfy following conditions to be eligible for approval u/s 80G

• The income of such institution or fund shall be eligible for exemption  u/s.11 & 12 or u/s.10(23); u/s.10(23AA) or u/s.10(23C) of the Income Tax Act

• The instrument of such trust shall prohibit the transfer or application of whole or any part of income or assets for any purpose other than a charitable purpose.

• The institution or fund is not for the benefit of any particular religious community or caste.

The institution or fund is-

i) Registered as a public charitable trust ; society,

ii) Sec. 25 company,

iii) University or any other educational institution approved by the CG u/s.10(23)

The institution maintains regular accounts of its receipts and expenditure;

The approval once granted u/s.80G is valid in perpetuity unless it is terminated.

Eligibility to deduction on donations made to an institution or a fund shall not be denied merely on the grounds that subsequent to the donation, any part of the income of such institution or fund has become taxable due to non-compliance with any of the provisions for availing exemption of such income.

Sec 80GG-Deduction for rent paid

Eligible Assessee-Individual(not receiving HRA)

Deduction is allowed to the extent of least of following-

1. Excess of rent paid over 10% of total income

2. 25% of total income

3. Rs.2,000/- per month

Total income for this purpose is calculated as follows:

Gross Total Income-

Less: a) Deductions under chapter VIA, except u/s.80GG

Less: b) Long Term Capital Gain – Sec 112

Less: c) STCG on listed securities – Sec 111A

Less: d) Income of non-residents chargeable to tax in respect of dividend, royalty – Sec 115A,Units – sec. 115AB, Bonds – sec. 115AC, Securities – sec. 115AD=Total Income XXX

Following conditions must be satisfied by the assessee to get the deduction-

• The assessee, his spouse, or minor child or the HUF in which he is a member should not own any residential accommodation at that place.

• No claim for self occupied property should be made in respect of any accommodation.

• Assessee must file declaration in form no. 10BA wherein he confirms the details of rent paid and fulfillment of the other conditions.

Sec 80GGA-Donations for scientific research, rural development, etc.

Eligible Assessee=All Assessees not having income chargeable under the head ‘Income From Business / Profession’

Following donations qualify for deduction

Any sum paid by the assessee in the P.Y. to

• A research association which has, as its object, the undertaking of scientific research

• A University, college

• or other institution, approved u/s.35(1)(ii) to be used for scientific research

• an association or institution which has as his object, the undertaking of any programme of rural development, - to be used for carrying out any programme of rural development approved by the prescribed authority for purpose of Sec.35CCA

• an institution/ association, approved by the prescribed authority u/s.35CCA(2), which has as its object ‘the training of persons for implementing programs of rural development’.

• Research association, which has as its object the undertaking of research in social science or statistical research

• University, college or other institution, to be used in research of social science or statistical research, The research association, university, college or institution must be approved under section 35(1)(iii)

Any sum paid to:

• a Public Sector Company  or

• a local authority                 or

• an association                   or

• institution approved by the National Committee(as per Explanation to Sec35AC)

for carrying out any eligible project or scheme (as per Explanation to Sec35AC)

Any sum paid to a rural development fund set up and notified u/s.35CCA

Any sum paid to National Urban Poverty Eradication Fund (NUPEF)

If the deduction is claimed under this section and allowed for any A.Y.,deduction shall not be allowed in respect of such payment under any provision of this act for the same or any A.Y.

If the donation is of Rs.10,000/- or more, the payment must be made by any mode other than cash, to avail the deduction. Sec.80 GGA (2A) w.e.f. AY 13-14.

In case, any person making contribution to Institution/Association, which was granted approval under sec 80 GGA, is eligible to claim such contribution as deduction, even though the approval was withdrawn subsequently by the CG.

Sec 80GGB-Deduction in respect of contributions given-by companies to political parties

Eligible Assessee=An Indian Company

Deduction is available for any sum contributed in the P.Y. to:

• Any political party, registered u/s.29A of the‘Representation of the People Act, 1951 OR

•An ‘electoral trust’

Deduction shall be allowed in respect of any contribution (as defined u/s293A of co act)

1. A donation or subscription or payment given by a company to a person for carrying on any activity which is likely to effect public support for a political party

2. The expenditure incurred, directly or indirectly, by a company on advertisement in any publication (a souvenir, brochure, tract, pamphlet or the like) by or on behalf of a political party or for its advantage

Section 80GGC-Deduction in respect of contributions given by any person to political parties

Eligible Assessee =Any person

Deduction is available for any sum contributed in the P.Y. by any person to:

• A political party, registered u/s.29A of the Representation of the People Act or

• An electoral trust

Deduction is not available to a local authority and an artificial juridical person, wholly or partly funded by the Govt.

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