Income Tax Saving
Income Tax Saving,To avail tax deduction under Section 80GGC of the Income Tax Act for donations made to registered political parties in India, you can follow these steps:
Identify the registered political party:
Ensure that the donation is made to a political party that is register with the Election Commission of India.
Verify the mode of donation
Donations to political parties can be make in cash, cheque, or digital modes such as online transfer, NEFT, or RTGS.
Determine the donation amount
The donated amount should be within the prescribe limit of Section 80GGC, which is a maximum of 10% of the donor’s gross total income.
Obtain a receipt
To claim the tax deduction under Section 80GGC, it is necessary to obtain a receipt or proof of donation from the political party.
Claim the deduction:
While filing your income tax returns, claim the donation as a deduction under Section 80GGC to avail the tax benefit.
It is important to note that cash donations to political parties should not exceed Rs. 2,000. Any donations exceeding this amount must be make via cheque or digital modes to be eligible for tax deduction.
Please consult with a tax professional or refer to the latest tax guidelines for specific and up-to-date information regarding Section 80GGC and its applicability.
To Visit https://www.incometax.gov.in/
