80ggc deduction: Section 80GGC of the

Section 80GGC of the Income Tax Act, 1961, allows taxpayers to claim a deduction for donations made to political parties or electoral trusts. Explore its benefits, deductions, limits and criteria. Section 80GGC of the Income Tax Act, 1961, is a provision that allows individuals to claim deductions on contributions made to political parties, subject to certain conditions. 18[Providedthat no deduction shall be allowed under this section in respect of any sum contributed by way of cash.] Explanation. —For the purposes of sections 80GGB and 80GGC, “political party” means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951). 17. Introduction In India, political donations are incentivized through tax deductions under Sections 80GGB and 80GGC of the Income Tax Act, 1961. These provisions encourage individuals and companies to financially support registered political parties or electoral trusts while reducing their tax liability. Section 80GGB applies to Indian companies, allowing a 100% deduction on donations, while Section 80GGC extends similar benefits to individuals, Hindu Undivided Families (HUFs), and other non ...