Under the existing provisions of section 80GGB, any sum contributed by an Indian company to any political party or an electoral trust in the previous year, is allowed as deduction in computing the total income of such Indian company. A similar deduction is available to an assessee, being any person other than local authority and artificial juridical person under section 80GGC. There is no specific mode provided for making such contribution.

With a view to discourage cash payments by the contributors, it is proposed to amend the provisions of aforesaid sections, so as to provide that no deduction shall be allowed under section 80GGB and 80GGC in respect of any sum contributed by way of cash.

This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

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Posted Under

Category : Income Tax (27505)
Type : Articles (17002)
Tags : Budget (1956)

2 responses to “Contribution not to be in cash for deduction u/s. 80GGB & s. 80GGC”

  1. shafiq khan says:

    What re sarkar
    Party ka faida party donation tax exempted acha hai na tax bharne se acha wohi amount party ko dedo ya apni hi koi polical Party banalo faida hi faida

    Actually bacho ki education full tax exemption hona chaiye

    Home loan full hona chaiye

  2. alpesh says:

    sir,
    i donation in section 8oGGB it is count for tds from my salary

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