- Section 80G – Deduction in respect of donations to certain funds, charitable institutions, etc.
- Section 80GGA – Deduction in respect of certain donations for scientific research or rural development.
- Section 80GGB – Deduction in respect of contributions given by companies to political parties.
- Section 80GGC – Deduction in respect of contributions given by any person to political parties.
- Conclusion:
In this blog post we will learn in detail about section 80G, 80GGA, 80GGB, and 80GGC which provide contributions to charitable organizations, scientific research, rural development, and political parties, who is eligible to claim these deductions , what is the eligibility amount and what are the conditions to be fulfilled.
Section 80G – Deduction in respect of donations to certain funds, charitable institutions, etc.
Deduction under this section can be claimed by taxpayers who make donations to certain approved funds, trusts, and charitable institutions. This section is applicable to all types of taxpayers (i.e. Individuals, HUFs, Firms, and Companies, whether resident or non-resident).
Mode of Donation:
| Mode | Eligible for Deduction? |
|---|---|
| Cheque / Draft / UPI / Net Banking | ✅ Yes |
| Cash (up to ₹2,000 only) | ✅ Yes (limited) |
| Cash (above ₹2,000) | ❌ Not allowed |
| In-kind (like clothes, food) | ❌ Not eligible for deduction |
Deductions under this section can be categorised in the following manner:
| Type of Donation | Deduction Allowed | Maximum Limit |
|---|---|---|
| with 100% deduction (without limit) | 100% | No cap on qualifying amount |
| with 50% deduction (without limit) | 50% | No cap on qualifying amount |
| with 100% deduction (with limit) | 100% | Limited to 10% of adjusted GTI* |
| with 50% deduction (with limit) | 50% | Limited to 10% of adjusted GTI* |
Adjusted Gross Total Income (GTI) = Gross Total Income minus deductions under Sections 80C to 80U (except 80G)
The original provision of Section 80G as mentioned in the Income Tax Act is reproduced hereunder for your ready reference:
Source : Income Tax Department official website
Section 80GGA – Deduction in respect of certain donations for scientific research or rural development.
Deduction under this section can be claimed by assessee whose income does not include profits from business or profession to claim 100% deduction or donations made to certain organizations engaged in scientific research or rural development.
Eligible donations are:
- Scientific Research: Payments made to approved research associations, universities, or institutions for scientific research.
- Social/Statistical Research: Contributions made to approved entities for social science or statistical research.
- Rural Development: Donations made to approved organizations for rural development programs or training.
- Eligible Projects: Payments made to public sector companies, local authorities, or approved institutions for projects approved by the National Committee.
- Conservation/Afforestation (up to March 31, 2002): Contributions made to approved entities for natural resource conservation or afforestation.
- Notified Funds: Donations made to the Rural Development Fund or National Urban Poverty Eradication Fund.
Conditions to claim deduction under section 80GGA:
- Payments above ₹2,000 are to be made in modes other than cash.
- Assessees should not have income from business or profession.
- Must obtain donation receipt with Name and address of the institution; PAN and approval number and Donation amount and mode of payment.
- To verify whether the institution is notified under Rule 11F and Section 35AC/35CCA.
Section 80GGB – Deduction in respect of contributions given by companies to political parties.
Deduction under this section can be claimed by Indian Companies who have made contributions to registered political parties or electoral trusts.
Conditions to claim deduction under section 80GGB:
| Requirement | Details |
|---|---|
| Donation recipient | Must be a registered political party or an electoral trust (registered under Sec 29A of the Representation of the People Act, 1951) |
| Mode of payment | Other than cash payment (i.e through cheque, digital transfer, electoral bonds) |
| Type of donation | Can be made via electoral bonds for anonymity and compliance |
Allowable amount : 100% of the amount.
Note : This section is not applicable to Individuals, Firms or LLPs.
Section 80GGC – Deduction in respect of contributions given by any person to political parties.
Deduction under this section can be claimed by Individuals and non-corporate entities (i.e other than local authority and every artificial juridical person wholly or partly funded by the Government) who have made contributions to registered political parties or electoral trusts.
| Requirement | Details |
|---|---|
| Donation recipient | Must be a registered political party or an electoral trust (registered under Sec 29A of the Representation of the People Act, 1951) |
| Mode of payment | Other than cash payment (i.e through cheque, digital transfer, electoral bonds) |
| Documents required | Receipt with party name, PAN, and payment mode |
Allowable amount : 100% of the amount.
Conclusion:
“Donations made to charitable or scientific institutions not only offer tax benefits to the taxpayer, but also empower them to contribute to global causes and help steer our nation toward a better future.”
It is also important for every taxpayer to:
- Choose the right institution (registered and approved)
- Ensure modes of payment (i.e donation above ₹2,000 is not made in cash)
- Maintain proper documentation (i.e donation receipts with all details filled)
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