Section 80GGA – Deductions for donations
Overview of Section 80GGA
In this post, we will be discussing what Section 80GGA is. Let’s dive into each section in detail :
What is Section 80GGA?
Section 80GGA of the Income Tax Act provides tax breaks for contributions to rural development and scientific research. This encourages more individuals to contribute to these worthwhile charities while saving money on taxes.
But some basic rules need to be followed. This section is intended to inspire individuals to give to worthy charities while also assisting them in saving money.
Let’s check who can profit from these tax breaks.
Who Is Eligible to Claim Deduction Under Section 80GGA?
- A prescribed authority under Section 35(1)(ii) approves any sum paid to a research association conducting scientific research or any sum paid to a college, university, or another institution for scientific research.
- The prescribed authority under Section 35(1)(iii) must approve any sum paid to a research association conducting research in social science or statistical research, as well as any sum paid to a college, university, or any other institution for the same purpose.
- An approved association or institution, approved under Section 35CCA, receives the sum when it undertakes any rural development program.
- The sum paid to an approved association or institution that undertakes training of person(s) for implementing programs of rural development.
- Amount paid to a public sector company, local authority or an approved association or institution which carries out projects or schemes approved under section 35AC.
- Sum paid to a notified Rural Development Fund.
- The total sum paid to the notified Fund for Afforestation.
- Sum paid to notify National Poverty Eradication Fun.
Donations Eligible Under Section 80GGA
- Donations have been made to notify funds for Afforestation.
- If you donate to a public sector company, local authority, or an approved association that carries out projects approved under section 35AC, you can get tax benefits.
- Donating to an approved association involved in rural development programs and approved under section 35CCA makes it eligible for tax benefits.
- If you donate to a research association doing scientific research or a college, university, or similar institution for scientific research, and the prescribed authority approves them under section 35(1)(ii), you can claim tax benefits.
- Donations to the National Poverty Eradication Fund are eligible for tax benefits.
- If you donate to a research association on social science or statistical research or to a college, university, or similar institution for the same purpose, and the prescribed authority approves them under section 35(1)(iii), you can claim tax benefits.
- Donations to an approved association or institution training individuals for rural development programs are eligible for tax benefits.
- Donations to the notified Rural Development Fund also qualify for tax benefits.
We have concluded this post on Section 80GGA – Deductions for donations. Feel free to share your views and opinions in the comment section below.
FAQs on Section 80GGA
1. Can you deduct donations from scientific research or rural development organizations?
Ans: Yes, gifts to these designated institutions are deductible under section 80GGA of the Income Tax Act.
2. What head of income is not allowed a deduction under this section?
Ans: All taxpayers except those with income from a business or a profession can benefit from this deduction.
3. Is it possible to use both Section 80GG and HRA deductions at once?
Ans: Individuals cannot use Section 80GG and HRA deductions simultaneously. Section 80GG of the Income Tax Act is for individuals who do not receive HRA as a part of their salary.
