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Contributions Given by Companies to Political Parties – Section 80GGB

U.C Date : 25 Feb 2015

The amount paid by an Indian company to any political party or electoral trust is allowed as deduction.

The amount paid in respect of advertisement in any publication (souvenir, brochure, trace, phamplet) is also allowed deduction under this section and not under section 37.

Political party means a political party registered under section 29A of the Representation of the People Act, 1951.

Bare Act for Sec 80GGB

Bare Act for Sec 80GGB

In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party [or an electoral trust].

The following proviso shall be inserted before the Explanation to section 80GGB by the Finance Act, 2013, w.e.f. 1-4-2014 :

Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this section, the word “contribute”, with its grammatical variation, has the meaning assigned to it under section 293A of the Companies Act, 1956 (1 of 1956).

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