CreditMantri Finserve Private Limited
Door No.3, Block B, No. 147, Workeasy Space Solutions, RK Swamy Centre, Hansa Building, Pathari Road,Thousand Lights, Chennai, Tamil Nadu600006
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
As per section 80GGB of the Income Tax Act,1961, Indian companies can make contributions to political parties in the country or electoral trusts. The prerequisite for availing of this deduction is that the political party must be registered under Section 29A of the Representation of peoples Act, 1951. The electoral trust must be registered as a non-profit organisation under Section 8 of the Companies Act,2013. The electoral trust accepts funding and donations on behalf of the political parties. The electoral trusts after receiving a fund from organisations or companies, reallocate the funds to the respective party.
The maximum deduction allowed under Section 80GGB for contributions made to political parties or electoral trust is 100 per cent. But, a point to be noted is that the companies can donate only 7.5% of their net profits for the past three consecutive years to avail of a deduction under Section 80GGB.
1. Cash contributions or cash transfers do not qualify as a mode of payment used for making transfers to political parties or electoral trusts. The contributions made should be either through electronic transfers, cheques or demand drafts.
2. There is no upper limit to the contributions that can be made under Section 80GGB. A full amount of deduction can be claimed by the companies with regard to this contribution. But, the companies can make a contribution of only 7.5% of the average profit for the past three consecutive financial years. The companies have to disclose the profits and also the contribution made in the profit and loss statement of the year.
3. Electoral bonds are one way the companies can invest in the political system and in this case, nothing has to be mentioned in the profit and loss statement of the company but the contribution made.
4. According to the latest guidelines from the government, if a company advertises on any platform which is owned by the political party, the advertisement would be considered a contribution made to the political party under Section 80GGB.
5. There is no limit on any amount paid as a contribution to the political party, but it is mandatory for the company to pay via acceptable means and have a documentary record of the transaction.
If the conditions mentioned are not complied with, the claim for deduction can be rejected by competent authorities.
Only companies/ enterprises registered under the Companies Act 2013 are eligible to claim a deduction under Section 80GGB
Companies/ enterprises which are in existence for less than three years are not eligible for deduction
Any funding received from foreign companies or individuals is disallowed under Section 80GGB
Any government company making a contribution to a political party is disallowed from availing of a deduction.
Yes, the company or enterprise can donate or contribute to multiple parties. It is up to the company or organisation to decide which party and how many parties the company wants to contribute money to. The details in financial statements of such donations and contributions is necessary for the companies. The party name and the amount has to be reported mandatorily. If the company wishes not to disclose the name of the party, it can donate via electoral bonds.
The main difference between the two sections is the assessee. In section 80GGB, the assessee is an individual taxpayer. On the other hand in Section 80GGB, the assessee is a company or an enterprise. Both the sections are similar with respect to documentation and representation required in the financial statements.
For the deduction under both the sections under Income Tax Act,1961, the receipt received by the political party has to be submitted by the assessee.
1. What is the difference between 80 and GGC and 80GGB?
The difference is the assesses and otherwise the sections are similar in nature.
2. How much deduction can be claimed under section 80GGB?
A hundred per cent deduction can be claimed for the contribution to political parties under Section 80GGB
3. Is the receipt from the political party necessary for claiming a deduction?
Yes, a receipt from the political party is necessary for claiming a deduction under section 80GGB
4. Which assessee can claim a deduction under Section 80GGB?
The assesses are companies or enterprises registered under the Companies Act, 2013.
5. Is there a requirement for the political party to be registered?
Yes, the political party is to be registered under the Representation Act, 1951.
7th Pay Commission
A Khata Property Tax
Advance Tax Payment
Advantages Of Paying Taxes
An Analysis Of Increase In Service Tax Rates
B Khata Property Tax
Bbmp Property Tax
Benefits Of Taxes
Capital Gains Tax
Chennai Property Tax
Coimbatore Property Tax
Corporate Taxation In India
Delhi Property Tax
Exemptions Under GST
Ghaziabad Property Tax
Ghmc Property Tax
Goods And Services Taxes
Gross Salary In India
GST Advance Ruling
GST Input Credit
GST Payment Due Date
GST Penal Provisions
GST Refund Status
GST Returns Filing Due Dates
House Rent Allowance
How To Calculate Hra Exemption On Income Tax
How To Calculate Income Tax On Salary
How To Claim Income Tax Refund
How To E File Income Tax Returns
How To Track Your Income Tax Refund Status
Income From House Property And Taxes
Income Tax Credit
Income Tax Exemption
Income Tax Returns
Income Tax Slabs
Kanpur Property Tax
Kredit Bee Personal Loan
New Service Tax
Penalties Under GST
Professional Taxes In India
Property Tax In Ahemdabad
Property Tax In Indore
Property Tax In Mumbai
Pune Property Tax
Road Tax Toll Tax
Road Taxes In States And Uts Of India
Section 80ccc Of The Income Tax Act
Securities Transaction Tax
Service Accounting Codes
Steps To Paying Property Tax
Tax Benefit On Stamp Duty And Registration Charges
Tax Deducted At Source
Taxes In India
The Income Tax Act
What Is A Cancelled Cheque
What Is Form 15h In Income Tax
What Is Gratuity
Withholding Tax In India
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf. We do not sell any loans on our own and do not charge any fee from our customers/viewers for the purpose of loan application