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Donation to a political party

Mitesh Shah (Article) (80 Points)

16 March 2023

what is the idle % of our total income for which we wish to donate and not have any notice from the department...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193805 Points)
Replied 16 March 2023

Companies can claim up to 100% of their donation as long as it is less than their total taxable income. The only acceptable modes of payment include cheques, demand draft, electronic transfer, or a pay order towards the bank account of the political party.

However, Companies Act 2013 states that the contribution cannot be more than 7.5% of their annual net profit (average of 3 years).

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