Section 80ggc of income tax act

To Start receiving timely alerts please follow the below steps: • Click on the Menu icon of the browser, it opens up a list of options. • Click on the “Options ”, it opens up the settings page, • Here click on the “Privacy & Security” options listed on the left hand side of the page. • Scroll down the page to the “Permission” section . • Here click on the “Settings” tab of the Notification option. • A pop up will open with all listed sites, select the option “ALLOW“, for the respective site under the status head to allow the notification. • Once the changes is done, click on the “Save Changes” option to save the changes. Individuals who make contributions towards a political party can avail deductions for the same under Section 80GGC in the range of 50% - 100% of the contributed amount. As per the rules of the Income Tax Act, individuals can donate as much as 10% of his or her gross earnings to any of the political parties of their personal choice. One has to donate the amount strictly through bank either by cheque, demand draft or online internet banking or wire transfer or through the use of debit or credit card. Any offerings in cash or kind to political parties or electoral trust are not eligible for deduction under this section. Entities to which contributions or donations can be made under this section • Any political party in India which has registered itself under Section 29A of the Representation of the People Act of 1951. • An electoral trust Procedure to avail d...

Section 80GGC: Tax Benefits to certain persons Individuals on Political Donations Introduction A person supports a political party not only by expressing unity or sharing ideas with the party but also in tax evasion. Political contributions are made to cover expenses incurred by a political party especially in election campaigns. Indian companies and individuals are allowed to donate but not in cash. This donation is eligible for deduction when calculating the total income of the company or individual. Proof of expenses should be kept to confirm those processes. People who prefer tax deductions in support of political parties, therefore have the benefit of saving a good portion of tax under Section 80GGC and other exemptions such as House Rent Allowance, Medical Grant and the like. This Section was introduced by the Finance Act of 2009. Section 80GGC is defined under the Income Tax Act of 1961 for the benefit of those who make donations to political parties. There are certain terms and conditions that must be followed by each person in order to receive the stated benefits. One must be aware of the eligibility and limit of deductions in order to obtain a tax deduction. To summarize the definition of Section 80GGC, we specify the withholding of money under the Income Tax Act allowed from the total income of auditors specified by contributions made to a political party or electoral trust. The total amount is taxable as long as it is not funded, but invested in other ways One ...

Section 80GGC comes under the wing of the Income Tax Act (1961). It allows taxpayers in India to claim tax deductions for their contributions to political parties. The government of India offers various provisions under various sections of the Act which provide tax benefits to taxpayers who contribute additional funds. By availing themselves of this provision, taxpayers can claim deductions on their taxable income. Taxpayers must know the details regarding Section 80GGC deductions to fully understand its benefits. What is Section 80GGC? Individual taxpayers in India may claim tax deductions for contributions made to political parties during the prior fiscal year under Section 80GGC of the Income Tax Act, 1961. It is crucial to remember that this clause does not provide tax deductions for contributions given in cash, by local governments, or by legal entities. Taxpayers may deduct other expenditures, including medical expenses and home rent allowances, in addition to those covered under Section 80GGC. Taxonomies should know the different rules and sections of the Income Tax Act 1961 to maximise their tax savings and reduce taxable income. Taxpayers can significantly lower their tax payments and enhance their discretionary income by utilising the numerous tax deductions and exemptions provided under the Act. Who is Eligible for Section 80GGC Deductions? Individual taxpayers, Associations of Persons (AOPs), Hindu Undivided Families (HUFs), Body of Individuals (BOIs), and firm...

The Indian government introducedSection 80GGC of the Income Tax Actto protect the interests of those who make donations to political parties. However, one needs to meet some criteria and adhere to certain rules for claiming deduction. These are explained briefly below. Also, keep reading to know about exceptions, procedures to avail deduction, and other information. What Does Section 80GGC of the Income Tax Act State? Section 80GGC came into force as a part of the Finance Act 2009 to avoid corruption instances and bring a culture of transparency in electoral funding. Under this Section, taxpayers donating to a political party can claim a deduction on their total income. This means a contribution made underSection 80GGC of the What Are the Features of Section 80GGC? Here are some features of Section 80GGC: • Only a taxpayer or a non-corporate assessee can avail 80GGC deduction. • The deduction under this Section falls under Chapter VIA deductions. • The objective of this Section is to bring transparency into electoral funding. • It is not applicable on TDS charged on an individual’s salary. Instead, it is only for those whose salary is their only income, and there is no income from other businesses. What Are the Eligibility Criteria to Claim 80GGC Deduction? For claiming 80GGC deduction, one must fulfil the following criteria: • Taxpayers availing deduction must be either an individual or a person • A local authority cannot claim 80GGC deduction • Companies can’t enjoy bene...

By CA Milind Wadhwani Executive Summary The Income Tax Department has identified the donors who had claimed deductions for the alleged bogus donations made to Registered Unrecognised Political Parties (RUPPs) based on their bank account statements. Notices under section 148A of the Income Tax Act have been issued to the donors, and the reassessment proceedings will be initiated on the beneficiaries. Background: The Income Tax Department has identified the donors who had claimed deductions for the alleged bogus donations made to Registered Unrecognised Political Parties (RUPPs) based on their bank account statements. Notices under section 148A of the Income Tax Act have been issued to the donors, and the reassessment proceedings will be initiated on the beneficiaries. Why has the Income Tax Department issued notices under Section 148A? The Income Tax Department has issued notices under Section 148A to reassess the income of taxpayers who claimed political party donations as a deduction in AY 19-20. The department has deemed these donations as bogus and is treating them as income that has escaped assessment. The department’s search operation under Section 132A on 23 RUPPs in Gujarat triggered these notices. During the search, it was found that agents charged commissions of up to 5%, and returned the remaining amount in cash to the Donor. What happens if taxpayers fail to prove the genuineness of their claim for political party donations? Taxpayers who fail to prove the genui...

Deduction under section 80GGA of the Income Tax Act, 1961 is available to all the taxpayers in respect of donations made for specific scientific, social or statistical research or rural development. The present article covers the detailed explanation on deduction available under section 80GGA. Categories of persons eligible for claiming deduction under section 80GGA – Deduction under section 80GGA is available to all the types of the assessee, i.e. individual, company, AOP, BOI, HUF etc. However, only those assessee whose gross total income includes income chargeable under the head ‘ Profit and gains of business or profession’ are not eligible for claiming deduction under section 80GGA. Donations that qualify for deduction under section 80GGA – Following is the list of donations that qualify for deduction under section 80GGA – • Amount paid to a research association which carries out scientific research or any amount paid to a university, college or any other institution to be used for scientific research. Please note that the research association, university, college or institution should be approved as per section 35 (1) (ii). • Amount paid to a research association carrying out research in social science or statistical research or any amount paid to a university, college or any other institution to be used for research in social science or statistical research. Please note that the research association, university, college or institution should be approved as per sectio...

• What is Section 80G? • Tax Exemption Under Section 80G of Income Tax Act • What is the qualifying amount u/s 80G for donations? • How to calculate the gross adjusted total income? • Calculation of Deduction under section 80G of Income Tax Act • How to claim deduction under section 80G? • Donations Eligible for 100% Deduction u/s 80G Without Qualifying Limit • Donations Eligible for 50% Deduction Without Qualifying Limit • Donations Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income • Donations Eligible for 50% Deduction Subject to 10% of Adjusted Gross Total Income • Tax Exemption u/s 80GGA of Income Tax Act, 1961 • Donations Qualify for Deduction u/s 80GGA • Tax Benefit u/s 80GGB of Income Tax Act, 1961 • Tax Benefit u/s 80GGC of Income Tax Act, 1961 • Key difference between Section 80G, Section 80GGA, Section 80GGB and Section 80GGC What is Section 80G? The Income Tax Act allows deduction while calculating the total taxable income to every assessee. One such deduction is allowed under section 80G of Income Tax Act, 1961 for donations made to a charitable organization or a trust. Along with these deduction is also available for donation to a political party, research organization or an electoral trust. Tax Exemption Under Section 80G of Income Tax Act Any donation made to a relief fund or charitable institution qualify for a deduction. This deduction is available while calculating the total taxable income. However, the following conditions apply f...

Table of Content • • • • • • Introduction In India, political parties play an essential role in the democratic process by contesting elections and governing the country. Political parties need financial resources to conduct their operations and campaigns, which are often acquired through donations from individuals, companies, and other institutions. The Income Tax Act of 1961 and the Representation of the People Act of 1951 govern contributions to political parties in India. Political parties must keep track of any funds they receive and submit them to the Indian Election Commission. What is Section 80GGC? Section 80GGC of the Income Tax Act, 1961, provides a tax deduction to individuals for donations made to registered political parties or electoral trusts registered under the Representation of the People Act, 1951. By offering tax benefits on donations, the section encourages people to support political parties as well as engage in the political process. Eligibility Criteria for Section 80GGC Tax Deductions To claim a tax deduction under Section 80GGC of the Income Tax Act, taxpayers must fulfill the following eligibility requirements: • Section 80GGC permits an individual taxpayer to seek a tax deduction. So, when filing Income tax returns, an employee who receives income through salary and does not receive any additional income from other businesses is eligible for a tax deduction. • A local authority cannot be a taxpayer or appraiser. • An artificial judicial person w...

To Start receiving timely alerts please follow the below steps: • Click on the Menu icon of the browser, it opens up a list of options. • Click on the “Options ”, it opens up the settings page, • Here click on the “Privacy & Security” options listed on the left hand side of the page. • Scroll down the page to the “Permission” section . • Here click on the “Settings” tab of the Notification option. • A pop up will open with all listed sites, select the option “ALLOW“, for the respective site under the status head to allow the notification. • Once the changes is done, click on the “Save Changes” option to save the changes. Individuals who make contributions towards a political party can avail deductions for the same under Section 80GGC in the range of 50% - 100% of the contributed amount. As per the rules of the Income Tax Act, individuals can donate as much as 10% of his or her gross earnings to any of the political parties of their personal choice. One has to donate the amount strictly through bank either by cheque, demand draft or online internet banking or wire transfer or through the use of debit or credit card. Any offerings in cash or kind to political parties or electoral trust are not eligible for deduction under this section. Entities to which contributions or donations can be made under this section • Any political party in India which has registered itself under Section 29A of the Representation of the People Act of 1951. • An electoral trust Procedure to avail d...

The Indian government introducedSection 80GGC of the Income Tax Actto protect the interests of those who make donations to political parties. However, one needs to meet some criteria and adhere to certain rules for claiming deduction. These are explained briefly below. Also, keep reading to know about exceptions, procedures to avail deduction, and other information. What Does Section 80GGC of the Income Tax Act State? Section 80GGC came into force as a part of the Finance Act 2009 to avoid corruption instances and bring a culture of transparency in electoral funding. Under this Section, taxpayers donating to a political party can claim a deduction on their total income. This means a contribution made underSection 80GGC of the What Are the Features of Section 80GGC? Here are some features of Section 80GGC: • Only a taxpayer or a non-corporate assessee can avail 80GGC deduction. • The deduction under this Section falls under Chapter VIA deductions. • The objective of this Section is to bring transparency into electoral funding. • It is not applicable on TDS charged on an individual’s salary. Instead, it is only for those whose salary is their only income, and there is no income from other businesses. What Are the Eligibility Criteria to Claim 80GGC Deduction? For claiming 80GGC deduction, one must fulfil the following criteria: • Taxpayers availing deduction must be either an individual or a person • A local authority cannot claim 80GGC deduction • Companies can’t enjoy bene...