What is Section 80GGA under India Income Tax Act?
Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession.
Mode of payment: Donations can be made in the form of a cheque or by a draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed is considered eligible for deductions.
Donations Eligible Under Section 80GGA in India
- Any sum paid to a research association which undertakes scientific research, or a sum paid to a college, university or any other institution to be used for scientific research that is all approved by the prescribed authority under section 35(1)(ii)
- Sum paid to a research association which undertakes research in social science or statistical research, or sum paid to a college, university or any other institution to be used for the same purpose, and these must all be approved by the prescribed authority under section 35(1)(iii)
- Sum paid to an approved association or institution which undertakes any program of rural development and is approved under section 35CCA
- Sum paid to an approved association or institution which undertakes training of person(s) for implementing programs of rural development
- Sum 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 notified Rural Development Fund
- Sum paid to notified Fund for Afforestation
- Sum paid to notified National Poverty Eradication Fund
If a deduction has been allowed under section 80GGA, such expenses shall not be deductible under any other provision of the income tax act.