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Under Section 80GGA of the Income Tax Act it is stated that the deductions are allowed for the donations that are made towards rural development and scientific research. This deduction is allowed to all assessees except those who have income from business or a profession.
Donations can be made through cheque, cash, or draft. 100% of the amount donated or contributed is eligible for deductions however any cash donation above Rs 2,000 is not allowed for deduction under this section.
The following donations are eligible for deductions under in this section
Note: Any deduction that is allowed under section 80GGA, the same expenses will not be deductible under any other section of the income tax act.
The taxpayer is required to furnish a certificate named as Form 58A from the payee under rule 110 of the income tax rules 1962. This certificate contains all the information related to the amount paid by the assessee in the previous year to any local authority, public sector company or any institution approved by the national committee for carrying a scheme or project.
The certificate should be furnished from the association to the following effect:
In case the institution where the donation is done is involved in training of persons, the certificate must be attested with the following information intact:
Several conditions are to be fulfilled and documents are to be furnished by an assessee to claim deductions under section 80GGA. These documents works as a proof towards donations that are given by the individual. The documents are as follows:
As a fact Section 80GGA is a subsection of Section 80G of the income tax act. But there is a major difference between both the sections. The difference is as follows:
Section 80G | Section 80GGA |
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This section of the income tax act offers exemption of tax for taxpayers for making various donations towards charitable organizations that are registered with the Government of India. | This section of the income tax act offers exemption of tax for taxpayers for making donations towards organizations involved in any sort of scientific research or rural development. |
The taxpayers can claim deductions for making donations for scientific, statistical or social research or any other rural development under section 80GGA. All the taxpayers who donate are eligible for deductions except those who have income from a business or profession.
Yes, donations given to notified institution or approved association for scientific research or any rural development are eligible for deduction under section 80GGA of Income tax
Under section 80GGA, the donations given to any approved scientific research project is allowed to be deducted while filing for taxation. 100% of the amount donated or contributed is eligible for deductions however any cash donation above Rs 2,000 is not allowed for deduction under this section
This deduction is allowed to all assessees except those who have income from business or a profession.
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