Section 80G, 80GGA and 80GGB of Income Tax act, 1961 (A.Y. 2019-20)

Deductions from Gross Total Income (GTI) u/s 80 related to company assessees

1. Section80G ( Donations to charitable Institutions)

Eligible assessee: All assessees ( Individual, HUF, Company etc. )

Deduction limit: 100% or 50% of the donated amount or qualifying limit, allowed donation in cash upto ₹2000

             This deduction is available on account of any donation made by the assessee to specified funds or institutions. In some cases, deduction is available after applying the qualifying limit while in others, it is allowed without applying any qualifying limit. The amount paid to the following as donations during the previous year qualify under section 80G:-

(A) No Limit Donations	(B) With Limit Donations
Donations given to:- The National defence fund The Jawaharlal Nehru memorial fund The Prime minister's national relief fund National children fund National sports fund etc.	Donations given to:- The State or Central government Any Local authority Any authority constituted for development of housing and planning of cities and towns Any corporation set up to protect the interest of minorities etc.

Note:- With limit donations shall qualify for deduction up to a limited amount. These limits are:-

(¡) Actual total donations given under this category or

(¡¡) 10% of adjusted gross total income (GTI), whichever is less.

Adjusted gross total income= Gross Total Income (GTI) - [ Long term capital gain + Short term capital gain (covered under STT) + All other deductions u/s 80 (except 80G) + Rebatable income (if any) ]

Conditions for claiming deduction under this section:

1. The donation should be of sum of money, donations in kind do not qualify for deduction.
2. Donations should be made only to the specified funds / Institutions.
3. Donations of any amount exceeding ₹2,000 must be made in any mode other than by way of cash.
4. Donations must not be for the benefit of any particular religion, class, creed, community etc.

2. Section 80GGA ( Deduction for scientific research and rural development )

Eligible assessee: All assessees, except those who have Income (or Loss) chargeable to Tax under the head "Profits and Gains from Business and Profession".

Deduction limit: 100% of the amount donated, allowed donation in cash up to ₹10000.

                  

              This deduction is available in respect of the payments made during the previous year to the following Institutions:-

1. To an approved research association, University, college or other Institutions where these funds are to be used for scientific research.
2. To an approved research association, University, college or other Institutions which has as its object, the undertaking of research on social sciences and statistical research.
3. To an association or institution engaged in:-(a) Any approved program of rural development.                                                        (b) Training of persons for implementation of rural development programmes.
4. Any amount paid by the assessee in the previous year to a notified:-                              (a) Rural Development Fund                            (b) National Poverty Eradication Fund

3. Section 80 GGB ( Contributions made to Political Parties)

Eligible assesses: Companies

Deduction limit: 100% of the amount contributed (No deduction available for contributions made in cash)

                       Any amount contributed by an Indian company in the previous year, to any political party or electoral trust, shall be allowed as deduction while computing its total taxable income.

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