Sec 80GGC of IT Act

Hey Ishan! Great question on Section 80GGC and political party donations. Let me clarify the criteria and what “recognised” means here:

What is Section 80GGC about?

• Section 80GGC allows a deduction for donations made by individuals and HUFs to political parties or electoral trusts.

• The entire amount donated is deductible from gross total income.

Criteria for Political Party under Sec 80GGC:

• The donation must be made to a political party registered under Section 29A of the Representation of the People Act, 1951.

• This means the party must be registered with the Election Commission of India (ECI).

What does “recognised” political party mean?

• The Election Commission classifies political parties into:

  1. Recognised National Parties

  2. Recognised State Parties

  3. Registered Unrecognised Political Parties (RUPP)

• Recognition is granted by ECI based on criteria such as vote share, seats won in elections, etc.

• Registered Unrecognised Political Parties (RUPP) are parties that are registered but do not fulfill the criteria for recognition.

Which parties qualify for Sec 80GGC deduction?

• The law only requires the party to be “registered” under Section 29A.

• Recognition (national/state) is NOT mandatory for claiming deduction under 80GGC.

• So, donations to RUPPs (registered but unrecognised) also qualify for deduction.

Summary:

So, in simple terms:

• If a party is registered with the ECI under Section 29A, it qualifies for deduction under Section 80GGC, irrespective of recognition status.