18 September 2009
If X Co.Ltd.Paid a Donation to Political party Say Amounted To Rs.100000.is donation to political party allowed as a deduction & under what section?
18 September 2009
Deduction in respect of contributions given by companies to political parties.
section 80GGB. In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party [or an electoral trust].
Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this section, the word “contributeâ€, with its grammatical variation, has the meaning assigned to it under section 293A49 of the Companies Act, 1956 (1 of 1956)
18 September 2009
Also check section 293A of companies act, 1956 to check there is no violation of the companies act, 1956 regarding political contribution.
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