Table of Contents
Is there any limit on 80GGC?
Section 80GGC of the Income Tax Act provides a deduction for taxpayers who have made donations to political parties. The quantum of contribution can be extended upto a maximum of 10\% of the Gross Total Income.
What is the maximum limit for tax exemption?
Therefore, under the new tax regime, basic exemption limit will remain Rs 2.5 lakh for all taxpayers.” Do keep in mind that only individuals having no business income in a financial year are eligible to choose between both the tax regimes every year.
How much deduction is eligible for donation to political party?
The Company can claim 100\% deduction against the amount donated to a political party under section 80GGB. Therefore, you are free to make donations to political parties as per your preference and claim deductions in your income tax for the same.
What is the tax exemption for donations?
Section 80G of the Income Tax Act provides a 50\% exemption from paying tax on donations made to funds or organizations qualifying under the act. This Section offers tax deductions on donations made to certain funds or charitable organisations with a qualifying limit not exceeding 10\% of Adjusted Gross Total Income.
What is 80GGC exemption?
Section 80GGC of the Income Tax Act provides tax deductions for contributions made to political parties. This can range from 50\% to 100\% of the amount contributed. This provides a great deal of tax saving while encouraging a strong political system.
What is the difference between 80GGB and 80GGC?
A deduction similar to section 80GGB is available to an assessee, being any person other than local authority and artificial juridical person wholly or partly funded by the Government under section 80GGC. Here also cash contribution is not allowed as deduction. Section 80GGC reads as: 80GGC.
What are the 70 exemptions in income tax?
New income tax slabs and rates What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.
Which of the following donation is eligible for 100\% deduction?
(C) Donations U/s 80G to the following are eligible for 100\% Deduction subject to Qualifying Limit: Donation to Government or any approved local authority, institution or association to be utilised for promoting family planning. the sponsorship of sports and games, in India.
What is the amount of donation allowed under Section 80G?
Amount of Donation: The various donations specified in section 80G are eligible for a deduction of up to either 100\% or 50\% with or without restriction, as provided in section 80G. How to claim the deduction To be able to claim this deduction the following details have to be submitted in your Income Tax Return: Name of the Donee
Are donations to political parties eligible for deduction u/s 80ggb & 80ggc?
If you make any donation to foreign trust then no deduction u/s 80G will be allowed. Any donation made to political parties like souvenirs, pamphlets etc will not be eligible for deduction under this section . Although contribution (other than cash) to political parties are eligible for deduction u/s 80GGB & 80GGC.
What is the limit under section 80ggc?
There is no limit specified under section 80GGC. Therefore, any amount contributed to an electoral trust or a registered political party (u/s 29A of the RPA, 1951) can be claimed for the tax deduction. The donations made u/s 80GGC are 100\% tax deductible.
What is the maximum / qualifying limit for tax exemption under 80G?
The maximum / qualifying limit is 10\% of the “adjusted gross total income”. b) Net Qualifying limit = This is 10\% of the “adjusted gross total income”. c) Amount Deductible = 100\%/50\% of the donation amount subject to qualifying limit. What is “Adjusted Gross Total Income” for calculation of tax exemption under 80G?