Hello Tax gurus,
I have mode some donation to political party under section 80GGC.
But My employer is not accepting that Donation saying that it is not listed in "DEDUCTION OF TAX AT SOURCE- INCOME-TAX DEDUCTION FROM SALARIES UNDER SECTION 192 "
Please guide is there any such rule to not accepting 80GGC donation by employer ?
Thank you
Prakash
Your employer is not required to consider Section 80GGC for TDS computation. The Income Tax Act does not obligate employers to factor in political donations for salary TDS , it is entirely the employee responsibility to claim it while filing ITR.
What you need to do:
- In your ITR-1 or ITR-2, go to Schedule VIA (Deductions)
- Under Chapter VI-A deductions, locate the 80GGC row
- Enter the total donation amount and the name of the registered political party or electoral trust
- You can claim a deduction up to 100% of the donation, but the deduction cannot exceed your gross total income
- The donation must have been made by cheque, demand draft, or electronic transfer. Cash donations do not qualify
Your Form 16 will not reflect this deduction, but that is fine. Your ITR can have deductions beyond what Form 16 shows. The tax department validates using AIS and your bank transaction data.
Note: the Income Tax Department has been sending SMS notices to some 80GGC claimants asking for documentary proof. Keep the donation receipt, bank statement, and the political party PAN handy.
For the full rules including the corporate equivalent under 80GGB and what happens on scrutiny, this [Section 80GGC political donation deduction guide](https://taxgarden.in/blog/section-80ggb-80ggc-political-party-donation-deduction-income-tax-india) covers the compliance requirements.
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