12/12/2014

Deduction u/s 80GGA

Deduction in respect of certain donations for scientific research or rural development 


An assessee (other than an assessee whose gross total income includes income chargeable under the head "Profits and gains of business or professions") is entitled to deduction in the computation of his total income in respect of the following payments/ donations.


1. Sums paid to a research association which has its object the undertaking of scientific researarch or to a university, college or other institution to be used for scientific research where such association, university, college or institution has been approved for the purpose of Section 35(1)(ii).

2. Sums paid to a university (or with effect from the assessment year 2011-12, a research association which has as its object the undertaking of research in social science or statistical research), college or other institution to be used for reearch in social science or statistical research provided such university, association, college or institution is approved for the purpose of Section 35(1)(ii) [applicable from the ay 92-93 onwards].

3. Sums paid to an approved association or institution which has has its object the training of persons for implementing programmes of rural development.

4. Sums paid to an approved association or institution which has as its object the undertaking of any programe of rural development to be used for carrying out any such program approved under Section 35CCA.

5. Sums paid to a public sector company, local authority or an approved association or institution for carrying out any eligible project or scheme, referred to in Section 35AC.

6. Sums paid to an approved association or institution, which has its object the undertaking of any program of conservation of natural resources (or of afforestation, with effect from the ay 1992-93 onwards), to be used for carrying out any programe approved u/s 35CCB.

7. W.E.F. AY 1983-84, any sums paid towards notified rural development fund [i.e. National Fund for Rural Development notified vide Notification No. GSR 84(E), dated February 28,1984].

8. Sums paid to notified National Poverty Eradication Fund (applicable from the AY 1996-97), Where deduction under this section is claimed and allowed, deduction will not be allowed in respect of the same payment under any other provisions of the Act for the same or any other assessment year.

9. W.E.F. 2006-07, deduction available under section 80GGA shall not be denied merely on the ground that after the contribution made by the assessee to above institutions, the approval granted to these institutions has been withdrawn. In other words, contribution to these institutions will be qualified for deduction even if after the date of making contribution, the approval granted to these institution has been withdrawn.

Mode of Payment in this Section - Donation can be given in cash or by cheque or draft. However, no deduction shall be allowed under section 80GGA in respect of cash contribution (exceeding Rs. 10,000) from the AY 2013-14.

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