Terms & Conditions

Section 80GGC Deduction Limits

Section 80GGC of the Income Tax Act does not specify any limit for deductions on contributions made to electoral trusts or registered political parties.

Under Section 80GGC, any amount contributed to an electoral trust or a registered political party (as per Section 29A of the Representation of the People Act, 1951) can be claimed as a tax deduction. The donations made u/s 80GGC of income tax act are 100% tax deductible. However, donations made in cash are not allowed as a deduction from your income. You also need to provide proof of the donations made to claim the deduction.

However, it is important to note that the deduction for donation is limited to the total income of the individual and cannot exceed that amount. The limit of donation under section 80GGC of the Income Tax Act has been fixed at 10% of your gross annual income.

Exceptions Under Section 80GGC

Donations or contributions made in cash or kind are not eligible for income tax deductions on political party donations. This amendment to the Section was brought into effect from the financial year 2013-14 onwards. 

The contribution to the political party should not be made in cash or kind. One may use other means for the donation through the bank like a cheque, demand draft, via-transfer, debit or credit card, or internet banking, UPI

Individuals providing gifts or donations in forms other than monetary contributions cannot claim tax deductions under Section 80GGC.

The entire contribution is allowed for a tax deduction if it is not more than the taxable income of the eligible assessee.