What is Section 80-GGC

Updated on : Aug. 27, 2022 - 3 p.m. 17 min read.

Section 80GGC of the Income Tax Act deals with any contributions made by an individual to a political party. Under Section 80GGC Individuals can avail of tax deductions that range from 50% - 100% of the contribution amount. As per the Income Tax Act, an individual can donate as much as 10% of his or her gross earnings to any political organization of his or her choice.

  1. The tax deduction under Section 80GGC can be claimed by an individual taxpayer.
  2. The deduction cannot be claimed by any local authorities or an artificial person funded in part or fully by the government.
  3. The 80GGC deduction cannot be claimed by corporations or companies.

Taxpayers or assesses looking to claim deductions under Section 80GGC can do so while filing their tax returns simply by including the amount of their contribution to a political party in the space provided for Section 80GGC in the Income Tax Return form.

This Section appears under Chapter VI-A deductions in the Income Tax Return form.

Donation to Political Party 80GGC limit

Donations made to political parties should be made solely through legitimate banking portals such as online internet banking, cheques, debit cards, credit cards, demand drafts, etc. in order to claim deductions under this section.

The limit for claiming a deduction under Section 80GGC is as follows:

  • The amount donated should not exceed 10% of the taxpayer's total income for the previous year.
  • The deduction is available only for donations made by an individual taxpayer or a Hindu Undivided Family (HUF).

It is important to note that donations made in cash exceeding Rs. 2,000 are not eligible for tax deduction. Also, the taxpayer must obtain a receipt from the political party to claim the deduction.