What is Section 80GGC (Donation to the political parties or electoral trusts)?
➡️Section 80GGC of the Income Tax Act was introduced to bring about transparency in electoral funding. It encourages individuals to financially support the political system and claim tax deductions against such donations to lower their tax liability. Political party must be registered under section 29A of the Representation of the People Act, 1951. Any donation/contribution made to any other political party would not qualify for deduction u/s 80GGC.
➡️ 100% of a taxpayer’s donation to a registered electoral trust or political party can be claimed as deduction. However, since this section is under Chapter VIA deductions, the total deduction cannot surpass the total income of an individual donating.
➡️Contributions or donations should be made to political parties through legitimate banking portals, such as internet banking, credit cards, debit cards, cheques, demand drafts etc. to claim deductions under Section 80GGC.
www.startupstreets.com, www.growfranchisees.com, www.intellexconsulting.com
