RSS

Section 80 GGA – Deductions in respect of certain donations for scientific research or rural development

09 Dec

Section 80GGA allows deduction from total income of employee in respect of donations of any sum as given in the Table below:

Sl. No.

Donations made to persons

Approval /Notification under Section

Authority granting approval/ Notification

1

To a research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research

u/s 35(l)(ii)

Central Government

2

To a research association which has as its object the undertaking of research in social science or statistical research or to a University, college or other institution to be used for research in social science or statistical research

u/s35(l)(iii)

Central Government

3

To an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved for the purposes of section 35CCA

furnishes the certificate u/s 35CCA (2)

Prescribed Authority under Rule 6AAA

4

an association or institution which has as its object the training of persons for implementing programmes of rural development.

furnishes the certificate u/s 35CCA (2)

Prescribed Authority under Rule 6AAA

5

To a public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme.

furnishes the certificate u/s 35AC(2)(a)

National Committee for Promotion of Social & Economic Welfare

7

To a rural development fund

notified u/s 35CCA (1)(c)

set up and notified by the Central Government

8

To National Urban Poverty Eradication Fund

notified u/s 35CCA(l)(d)

set up and notified by the Central Government

No deduction under this section is allowable in case:

(i)  The employee has gross total income which includes income which is chargeable under the head “Profits and gains of business or profession”.

(ii)  The amount of donation exceeds Rs. 10000 and is paid in cash.

The Drawing and Disbursing Authorities should satisfy themselves that all the conditions mentioned above are satisfied before such deduction is allowed by them to the employee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of donation and a receipt from the person to whom donation has been made and ensure that the approval/notification has been issued by the right authority. DDO must ensure a self-declaration from the employee that he has no income from “Profits and gains of business or profession”.

 

Meaning:

INVESTMENT IN SCIENTIFIC RESEARCH OR RURAL DEVELOPMENT AND SAVE TAXES- 80GGA

In case you are not engaged in any business or profession and have made donation for scientific research or rural development, then you are entitled to deduction under section 80GGA for any such amount contributed towards the same and can save taxes in the donations made so.

Section 80GGA covers the following contributions:

  • Any sum paid to a prescribed scientific research association, university, college or other institution which undertakes scientific research;
  • any sum paid to an approved association, college, or other institution to be used for research in social science or statistical research;
  • any sum paid to an approved association or institution which has its object of undertaking of programmes for rural development;
  • any sum paid to an approved association or institution which has its object of training of persons for implementing programmes for rural development;
  • any sum paid to a public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme u/s 35(2)(a);
  • any sum paid to a rural development fund set up and notified by the Central Government; and
  • any sum paid to the National Urban Poverty Eradication Fund set up and notified by the Central Government.

However, if deduction is claimed u/s 80GGA in respect of any payment of the nature specified above for any assessment year then deduction shall not be allowed under any other provision of the Act in any other year.

The deduction shall not be denied even after making the contribution, the approval of such association, university, college, and other institution has been withdrawn.

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Posted by on December 9, 2012 in TDS

 

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