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).