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80GGB Deduction in respect of contributions given by companies to political parties as per section 80GGB, chapter via of Income Tax Act

Indian Company assessee who has contributed any sum to political party or electoral trust can claim deduction under section 80GGB.

From 1.4.2014 no deduction shall be allowed under this section in respect of any sum paid by way of cash.

 

Provisions in the Income Tax Act related to Section 80GGB are:

80GGB In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party [or an electoral trust].

The following proviso shall be inserted before the Explanation to section 80GGB by the Finance Act, 2013, w.e.f. 1-4-2014 :

Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.

Explanation.-For the removal of doubts, it is hereby declared that for the purposes of this section, the word "contribute", with its grammatical variation, has the meaning assigned to it under section 293A36 of the Companies Act, 1956 (1 of 1956).

 

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