Deduction under section 80GGA of the Income Tax Act, 1961 is available to all the taxpayers in respect of donations made for specific scientific, social or statistical research or rural development. The present article covers the detailed explanation on deduction available under section 80GGA.
Categories of persons eligible for claiming deduction under section 80GGA –
Deduction under section 80GGA is available to all the types of the assessee, i.e. individual, company, AOP, BOI, HUF etc.
However, only those assessee whose gross total income includes income chargeable under the head ‘Profit and gains of business or profession’ are not eligible for claiming deduction under section 80GGA.
Donations that qualify for deduction under section 80GGA –
Following is the list of donations that qualify for deduction under section 80GGA –
- Amount paid to a research association which carries out scientific research or any amount paid to a university, college or any other institution to be used for scientific research.
Please note that the research association, university, college or institution should be approved as per section 35 (1) (ii).
- Amount paid to a research association carrying out research in social science or statistical research or any amount paid to a university, college or any other institution to be used for research in social science or statistical research.
Please note that the research association, university, college or institution should be approved as per section 35 (1) (iii).
- Amount paid to an association / institution to be used for conducting any programme of rural development which is approved under section 35CCA.
- Amount paid to an association / institution to be used for training of persons implementing a programme of rural development.
- Amount paid to a local authority or a public sector company or an institution or an association which is approved by the National Committee for carrying out any eligible project or scheme.
- Amount paid to a rural development fund which is set up and notified by the Central Government for the purpose of section 35CCA(1)(c).
- Amount paid to the National Urban Poverty Eradication Fund, which is set up and notified by the Central Government for the purpose of section 35CCA (1) (d).
Manner of payment of donations –
For claiming deduction under section 80GGA, a donation can be made through any manner i.e. cash or cheque or draft etc. However, in case of donation through cash, the maximum amount of INR 10,000 would be allowed as deduction.
Amount of allowable deduction –
100% of the amount paid to the specified institution or association or university or college is allowed as deduction.
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