Section 80GGB & GGC -Deduction on contributions made to Political parties
There are two sections under which deduction is allowable in respect of contributions made to any Political Party.
SECTION 80GGB AND GGC OF INCOME TAX ACT - DONATIONS TO POLITICAL PARTIES
1. Section 80GGB of Income Tax
Under Section 80GGB of the Income Tax, any contributions made by an Indian Company to any political party or an Electoral Trust is fully deductible from the gross total income.
The only condition attached to it is that the amount should be paid by way of cheque or electronic transfer. i.e. it should not be paid in Cash.
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2. Section 80GGC of Income Tax
Under Section 80GGB of the Income Tax, any contributions made by any person (other than local authority or any artificial juridical person wholly or partly funded by the Government ) to any political party or an Electoral Trust is fully deductible from the gross total income.
The only condition attached to it is that the amount should be paid by way of cheque or electronic transfer. i.e. it should not be paid in Cash.
For both the above sections, the political party will mean-
A political party registered under section 29A of the Representation of the People Act, 1951.
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