Section 80GGB: Deduction in Respect of Contributions Given to Political Parties or Electoral Trust

Section 80GGB for Deduction in respect of contributions given by companies to political parties

Eligible Assessee: Indian company

Eligible Payment: Donation given to political parties and electoral trust

Amount of Deduction: Actual payment

SECTION 80GGC: DEDUCTION IN RESPECT OF DONATION TO A POLITICAL PARTY

Eligible Assessee: Any assessee other than local authority or an artificial juridical person wholly or partly funded by the Govt.

Eligible Payment: Donation given to political parties and electoral trust

Amount of Deduction : Actual payment

Note:  If a foreign company gives donation, it can claim deduction u/s 80GGC. But if an Indian company gives donation, the deduction shall be allowed u/s 80GGB.

Reference: Section 80GGB for Deduction in respect of contributions given by companies to political parties.

80GGB. In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party or an electoral trust.

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this section, the word “contribute”, with its grammatical variation, has the meaning assigned to it under section 293A of the Companies Act, 1956 (1 of 1956).

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