What is Deduction in respect of contributions given by companies to political parties? What is Deduction in respect of contributions given by any person to political parties? Section 80GGB and 80GGC of Income Tax Act 1961

Deduction in respect of contributions given by companies to political parties and Deduction in respect of contributions given by any person to political parties are defined under section 80GGB and 80GGC of Income Tax Act 1961. Provisions under these Sections are:

Section 80GGB of Income Tax Act "Deduction in respect of contributions given by companies to political parties"

Section 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:
55[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 293A of the Companies Act, 1956 (1 of 1956).

 

Section 80GGC of Income Tax Act "Deduction in respect of contributions given by any person to political parties"

80GGC. In computing the total income of an assessee, being any person, except local authority and every artificial juridical person wholly or partly funded by the Government, there shall be deducted any amount of contribution made by him, in the previous year, to a political party or an electoral trust :
Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.
Explanation.-For the purposes of sections 80GGB and 80GGC, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).

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