FAQs on Section 80GGC
Q.1. What is Section 80GGC of the Income Tax Act?
Ans. Section 80GGC of the
Income Tax Act allows deduction to the individuals towards the contributions
made to the political parties or electoral trusts. This section encourages
financial support to the political entities while also providing tax deductions
to the contributors.
Q.2. Who can claim
deduction under Section 80GGC of the Income Tax Act?
Ans. Deductions under
Section 80GGC of the Income Tax Act can be claimed by individuals only. Local
authorities, artificial juridical persons, either partially or fully funded by
the government cannot claim this deduction.
Q.3. Who is not eligible
for making a claim under Section 80GGC?
Ans. Any individual who
makes the donation in cash or through other means, like gifts that are not
monetary in nature, is not eligible to claim any deductions.
Q.4. Can a deduction
under Section 80GGC of the Income Tax Act be claimed by a Non-Resident Indian?
Ans. Yes. NRIs are also
eligible for claiming deduction under Section 80GGC of the Income Tax Act
provided all the conditions mentioned in the section are complied with.
Q.5. What is the maximum
limit of deduction under Section 80GGC of the Income Tax Act?
Ans. There is no limit of
deduction under Section 80GGC of the Income Tax Act. You can deduct 100% of the
amount donated or contributed to political parties or electoral trusts under
Section 80GGC. However, this deduction cannot exceed your total taxable income.
Q.6. Are there any
restrictions on the mode of payment for claiming deduction under Section 80GGC
of the Income Tax Act?
Ans. Yes. To claim a
deduction under Section 80GGC of the Income Tax Act, the contributions should
be made in any mode other than cash. Contributions can be made by cheque,
draft, and other electronic means, to ensure easy traceability of the
transaction.
Q.7. What are the
documents required to claim tax deduction under Section 80GGC?
Ans. Receipt provided by
the political party for the donation made is required to claim tax deduction
under Section 80GGC. This receipt provides detailed information of the donor
including name, address, PAN, registration number of the party, amount paid,
mode of payment and other information.
Q.08. Can I claim a
deduction under Section 80GGC without any proof?
Ans. No, you cannot claim
a deduction without any proof. You need to have a receipt as proof of your
contribution. The details on the receipt must include your name, PAN card
number, address of the party, registration number mentioned in the fund, name
of the donor, and payment method.
Q.09. What is the
specific type of form or document required to claim a deduction under Section
80GGC of the Income Tax Act?
Ans. As such there is no specific form type or
document required for claiming a deduction under Section 80GGC of the Income
Tax Act. However, a receipt should be obtained which should mention the details
like name and address of the political party, amount contributed, and the mode
of payment.
Q.10. Which form do I
need to submit for claiming deductions under section
80ggc?
Ans. To avail tax
deductions under Section 80GGC, taxpayers need to submit Form 10BA to provide a
declaration about your rented residence.
Section 80GGC - Deduction on Donations to Political Party,
Q.11. How to declare the deduction under Section
80GGC in the ITR?
Ans. The deduction under
Section 80GGC of the Income Tax Act can be declared under Chapter VI-A
deductions while filing the ITR. The proof of such donation should be
available.
Q.12. Is an Indian
company eligible to claim a deduction for donations made to a political party?
Ans. Yes, An Indian
company can claim a deduction for donations made to a political party or
electoral trust under Section 80GGB of the Income Tax Act.
A Comprehensive Guide on Section 80GGC
Q.13. Can a government
organization donate to political parties?
Ans. No, a government
organization is not eligible for making donations to political parties.
Q.14. Who are the
eligible parties to receive donations as per Section 80GGC of the Income Tax
Act?
Ans. The political
parties registered under Section 29A of the Representation of the People Act,
1951, and electoral trusts approved by the Election Commission of India, are
eligible to receive donations.
Q.15. Can I save more
than Rs.30,000 by making a donation to a political party?
Ans. Yes, you can get a
100% deduction on your contribution made to a political party
How to claim deduction under section 80GGC?,
Q.16. Can I claim
deductions if I donated to multiple political parties?
Ans. Yes. You can claim a
100% deduction on contributions towards multiple political parties.
Q.17. Am I eligible for
deductions if I donate to any political party of my preference?
Ans. You are eligible for
deductions only if you make contributions to a political party that is
registered with the Election Commission and recognized as an election body.
Q.18. Can a deduction
under Section 80GGC of the Income Tax Act be claimed if the contribution is
made to the regional office of a political party?
Ans. As long as the
political party is registered under the appropriate laws, donations made to any
branch or unit of such an eligible political party will qualify for deduction
under Section 80GGC of the Income Tax Act.
Section 80GGC of the Income Tax Act: Boost your tax savings,
Q.19. Can a deduction
under Section 80GGC of the Income Tax Act be claimed if made in kind, such as
office supplies or services?
Ans. No. Deductions under
Section 80GGC of the Income Tax Act are permitted only if made in monetary form
and not otherwise.
Q.20. What is the
consequence if a political party or electoral trust does not utilize the
contribution properly?
Ans. If the political
party or electoral trust does not utilize the contribution properly, there will
be no impact on the taxpayer’s eligibility for claiming deduction under Section
80GGC of the Income Tax Act.
Q.21. What does
'electoral trust' mean in Section 80GGC?
Ans. An electoral trust
is a Section 8 company, or a non-profit entity established in India to collect
voluntary contributions from individuals and distribute them to various
political parties. The primary purpose of an electoral trust is to direct
received donations to eligible political parties.
Q.22. Can I avail of
deductions under this section if I am employed in a government organization?
Ans. Certainly,
government employees can avail deductions for contributions or donations made
to political parties under this section. However, they must not have any direct
or indirect affiliations with any political party.
Section 80GGC: Tax Benefits on Political Donations,
Q.23. Are there any
compliance or reporting requirements after claiming deduction under Section
80GGC of the Income Tax Act?
Ans. As such there is no
requirement after claiming deduction under Section 80GGC of the Income Tax Act.
However, it is important to preserve the receipt of the donation issued by the
political party or electoral trust for any future reference or inquiry by the
Income Tax Department.
