Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have income (or loss) from business and profession.
Mode of payment – Donations can be made in cheque or by draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as a deduction.
100% of the amount that is donated or contributed is considered eligible for deduction.
Eligible donations under Section 80GGA:
- Sum paid to a research association which undertakes scientific research, or sum paid to a college, university or any other institution to be used for scientific research and these are all approved by the prescribed authority under section 35(1)(ii)
- Sum paid to a research association which undertakes research in social science or statistical research or sum paid to a college, university or any other institution to be used for the same purpose and these are all approved by the prescribed authority under section 35(1)(iii)
- Sum paid to approved association or institution which undertakes any program of rural development and is approved under section 35CCA
- Sum paid to an approved association or institution which undertakes trainings of persons for implementing programs of rural development
- Sum paid to a public sector company, local authority or an approved association or institution which carries out project or scheme approved under section 35AC.
- Sum paid to notified Rural Development Fund
- Sum paid to notified Fund for Afforestation
- Sum paid to notified National Poverty Eradication Fund
If a deduction has been allowed under section 80GGA, such expenses shall not be deductible under any other provision of the income tax act.
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