Donations can be made through cheque, cash, or draft. Any cash donation above Rs 10,000 is not allowed for deduction under this section. Otherwise complete 100% of the amount that is being donated is considered for deductions.
The following are the amounts that are eligible for deductions in this section. They are:
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 national committee for carrying a scheme or project.The certificate should be furnished from the association to the following effect:
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|
|This section of the income tax act offers exemption of tax for taxpayers for making various donations towards charitable organizations that are registered with 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 is exempted from taxation.
Under section 80GGA, the donations given to any approved scientific research project is allowed to be deducted while filing for taxation.
Income from business or profession is not allowed for any deductions for donations under section 80GGA of the Income Tax Act.
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