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Deduction Under Section 80GGA of the Income Tax Act

by Varun Advani | 27 June 2015

DEDUCTION IN RESPECT OF CERTAIN DONATIONS FOR SCIENTIFIC RESEARCH OR RURAL DEVLOPMENT – [SEC.80GGA]

The following are salient features of section 80GGA- A taxpayer (other than an individual who has income chargeable under the head ‘‘profits and gain of business or profession ’’) can claim deduction under section 80GGA. Donation/contribution should be given to an approved research association university, college or other institution to be used for scientific research or rural development. A contribution can also be given for the purpose of eligible project/shame under section 35ACor for the purpose of notified National Fund for Rural Development or notifies National Urban Poverty Eradication Fund. 100 per cent for the aforesaid donation or contrition is deductible. Donation can be given in cash or by cheque or bank draft. However, no deduction shall be allowed under section 80GG in respect of a cash contribution (exceeding Rs.10, 000).

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