DEDUCTION UNDER SECTION 80GGA

SECTION 80GGA : Deduction in respect of certain donations for scientific research or rural development

In computing his total income, an assessee is allowed a deduction in respect of certain donations made for
scientific research or rural development, if the following condition is satisfied :

Essential condition for claiming deduction under this section :

Deduction is allowed to an assessee whose “Gross Total Income” does not include income chargeable under
the head “Profits and Gains of Business or Profession”.

[i.e., this deduction is allowed to ALL assesees, who does not have „Income from Business or Profession‟]

The deduction is available in respect of the donations made during the previous year to the following
institutions :

(i) To an approved scientific research association, university, college or other institution to be used for
scientific research (Business assessees were allowed this deduction u/s. 35);

(ii) To an approved university, college or other institution for research in social science or statistical
research (Business assessees were allowed this deduction u/s. 35);

(iii) To an association or institution engaged in any approved programme for rural development, or which is
engaged in training of persons for implementation of rural development programmes, or to a notified
rural development fund or to the notified National Urban Poverty Eradication Fund (Business assessees
were allowed this deduction u/s. 35CCA). In this case the assessee should furnish a certificate as is
required u/s. 35CCA; [For eg. Sum paid to the National Fund for Rural Development set up and notified
by the Central Government for the purpose of carrying out rural development]

(iv) To a public sector company or a local authority, or to an association or institution approved by the
National Committee, for carrying out any eligible project or scheme (Business assesses were allowed
this deduction u/s. 35CCA). In this case also the assessee should furnish a certificate as is required u/s.
35AC;

Quantum of Deduction : 100 % of the sum paid to the above institutions.

Amendment made by the Finance Bill, 2010 [W.e.f. A.Y. : 2011-12]

The deduction in respect of contributions to associations engaged in social science or statistical research
:

Presently, deduction u/s. 80GGA is allowed only when contribution for research in social sciences or
statistical research is made to a university, college or other institutions. The associations which are engaged
in undertaking research in social science or statistical research are not currently covered by the provisions of
Sec. 80GGA.

The Bill has amended Sec. 80GGA so as also to include an approved research association which has its object
undertaking research in social science or statistical research.

Important Notes

1. Where a deduction under this section is claimed and allowed for any assessment year then no
deduction shall be allowed in respect of such payments under any other provision of the Act for the
same or any other assessment year; [i.e., Double Deduction is not permissible]

2. Deduction allowed to the assessee shall not be denied if subsequent to the payment of the sum by
the assessee, the approval granted to any of the above institution is withdrawn;
 DEDUCTION UNDER SECTION 80GGB

SECTION 80GGB : Deduction in respect of contributions given by companies to political parties

Any sum contributed by an Indian Company in the previous year to any political party or an electoral trust
shall be allowed as deduction while computing its total income.

DEDUCTION UNDER SECTION 80GGC

SECTION 80GGC : Deduction in respect of contribution given by any person to political parties

Any amount of contribution made in the previous year to any political party or an electoral trust by an
assessee being any person, except local authority and every artificial juridical person wholly or partly funded
by the Government shall be allowed as deduction while computing the total income of such person.

Important Notes

1. For the purposes of Sec. 80GGB & 80GGC, “Political Party” means a political party registered u/s.
29A of the Representation of the People Act. 1951.

2. Electoral trust means a trust so approved by the Board in accordance with the scheme made in this
regard by the Central Government.

– Compiled by

CA. P.S.CHIRANJEEVI
Chartered Accountant