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80GGC vs 37(2B) contradiction ,why?

Others 656 views 2 replies

Arpit Sehgal

11 Points Posted on 23 March 2020

latter section says no expenditure in rspect of any advertisement,brochure,phamplet or like way for any political party will be allowed .
i.e.as per 37(2B)expense done for political party is disallowed.

In 80GGC any sort of expenditure is allowed 100% if mode other than cash ,done for political party.
even if assessee is has his income under head PGBP then also he can get deduction i.r.o such expenditure u/s 80GGC.

WHY? its not same

Replies (2)

Guest

Sec 37(2B) was introduced by Taxation Law (Amendment) Act, 1978 prohibiting the donation or any kind of payment to political party to be treated as business expenditure.
The section was introduced to curb corruption, excessive payments to political parties by different means.

Later, from F.Y. 2003-04, the govt. introduced sec. 80GGB and 80GGC for providing deduction for payment to political parties which helps funding to the political parties in India.

One of the reason to allowed deduction for payment under chapter VI A is that deduction allowed unde sec. 80GGB & 80GGC can not exceed the Total Income of the assessee.

This is my opinion.
Opinion of experts are most welcome.