As I understand that deduction under Chapter VI A shall be restricted to GTI , is any limit for Deduction u/s 80GGC like 10 % of GTI etc.. pl advice
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Deduction under Chapter VI A -80GGC
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| No, there is no percentage-based limit (like 10% of GTI) for deduction under Section 80GGC. Here is the complete picture: 1. Section 80GGC: Allows deduction for donations made by any person (other than local authority or artificial juridical person funded by government) to a registered political party under Section 29A of Representation of People Act, 1951, or to an electoral trust. 2. Limit: 100% of the amount donated is deductible under Section 80GGC — no upper cap as a percentage of GTI is prescribed. However, the overall Chapter VI-A deductions cannot exceed Gross Total Income. 3. Condition: Donation must be made by any mode other than cash (i.e., cheque/DD/online transfer only — cash donations are not eligible under this section as per the amendment effective from AY 2014-15). 4. Who Can Claim: Individual, HUF, firms, companies (Section 80GGB covers companies, 80GGC covers others). Not available if assessee is a local authority or Government-aided entity. 5. No Sub-limit: Unlike 80G (which has a 10% of Adjusted GTI cap for some donations), 80GGC has no such sub-limit. The entire donation amount is eligible. 6. Tax Regime: Deduction under 80GGC is not available if the taxpayer opts for the new tax regime under Section 115BAC. |
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