Definition
Section 80GGC (Donations to Political Parties)
Section 80GGC allows individuals a deduction for contributions made to registered political parties or electoral trusts.
Section 80GGC permits an individual taxpayer to deduct contributions to a registered political party or an electoral trust from taxable income. The deduction can be the full amount donated, but the payment must be made through a non-cash mode (banking channels), as cash donations do not qualify.
This is distinct from 80GGB, which covers similar contributions by companies. Genuine eligibility and proper documentation matter, and the tax department scrutinises such claims, so the donation must be real and to a duly registered party.
Like most chapter VI-A deductions, 80GGC applies under the old regime. It is a niche provision, but relevant for those who genuinely contribute to the political process.
Related terms
- Section 80CSection 80C allows a deduction from taxable income for specified investments and expenses, such as EPF, PPF, ELSS, life insurance premiums and home-loan principal, under the old regime.
- Section 80GSection 80G allows a deduction for donations made to approved charitable institutions and certain relief funds.
- Old vs New Tax RegimeIndia offers two personal income-tax regimes: the old one with various deductions and exemptions, and the new one with lower slab rates but most exemptions removed.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.