Amended and updated notes on section 80GGC of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to deduction in respect of contributions given by any person to political parties.
Chapter VIA (Sections 80A to 80U) of the Income Tax Act 1961 deals with the provisions related to deductions to be made in computing total income. Section 80GGC of IT Act 1961-2023 provides for deduction in respect of contributions given by any person to political parties.
Recently, we have discussed in detail section 80GGB (deduction in respect of contributions given by companies to political parties) of IT Act 1961. Today, we learn the provisions of section 80GGC of Income-tax Act 1961. The amended provision of section 80GGC is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 80GGC of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section 80GGC: Contributions given by any person to political parties
In computing the total income of an assessee, being any person, except local authority and every artificial juridical person wholly or partly funded by the Government, there shall be deducted any amount of contribution made by him, in the previous year, to a political party or an electoral trust:
Provided that 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).