Deduction under section 80GGB
Deduction u/s 80GGB- for contributions made to Political parties registered u/s 29A or Electoral Trust etc.
Who can claim deduction under section 80GGB-
It is available for all Indian Companies.
How much deduction amount can be claimed u/s 80GGB-
There is no cap or upper limit for the deduction under Income tax Act, but under the companies act, companies can contribute 7.5% of their average net profits of the past three financial years. It is mandatory for companies to disclose total contributions made by them u/s 182 in their profit & loss account with the name of political party. If electoral bonds are used then mentioning the name of the party is not required.
The deduction is allowed 100% i.e. whole amount donated qualifies for deduction.
Exception -
The following entities are not allowed to contribute to political parties:
Any company with younger than 3 years
or
A government company;
Mode of Donation-
The donation must be paid through cheque/draft/pay order etc. not in cash.
Deduction under section 80GGC
Deduction u/s 80GGC- for contributions made to Political parties registered u/s 29A or Electoral Trust etc.
Who can claim deduction u/s 80GGC-
It is available to an assessee (Including an Individuals) being any person other than local authority and artificial judicial person i.e. non corporate assessee.
How much deduction amount can be claimed u/s 80GGC-
There is no cap or upper limit for the deduction, the deduction is allowed 100% i.e. whole amount donated qualifies for deduction.
Mode of Donation-
The donation must be paid through cheque/draft/pay order etc. not in cash.