Section 80GGA: Deduction for Donation for Research/ Development

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Deduction under Section 80GGA is an Income Tax Deduction for Donations made for Scientific Research or Rural Development. The whole amount given as donation to the institutions specified under Section 80GGA is allowed as a deduction under Section 80GGA.

In other words, 100% of the sum paid to the institutions specified under Section 80GGA is allowed as a deduction from the Gross Total Income and the balance income would be taxable as per the Income Tax Slab Rates

It should be noted here that under Section 80G, the deduction allowed is either 50% or 100% of the sum donated (depending on the institution to which the donation is being made), whereas Deduction for Donation to institutions specified under Section 80GGA is 100% of the sum donated.

It should be noted that this deduction for donation specified to institutions under Section 80GGA is only available to those taxpayers who don’t have any income from any business/profession. Only, that category of taxpayers who have income under head Salary and/or House Property and/or Capital Gains and/or Other Sources can claim deduction under Section 80GGA.

If a taxpayer has any income under head Business/Profession, the taxpayer would not be allowed to claim deduction under this Section 80GGA. Deduction for Scientific Research for taxpayers having income from business/profession is already allowed under Section 35, and therefore they cannot claim this deduction again under Section 80GGA.

Institutions specified under Section 80GGA for eligible Donations

100% Deduction is available in respect of payments made during the financial year to any of the following institutions:-

  1. To an approved Scientific Research Association, university, college, or other institution to be used for scientific research. (Same deduction allowed to business assessees u/s 35)
  2. To an approved university, college or other institution for research in social science or statistical research. (Same deduction allowed to business assessees u/s 35)
  3. To an association or institution engaged in any approved programme for rural development, or which is engaged in training of persons for implementation of rural development programmes, or to a notified rural development fund or to the notified urban poverty eradication fund. (Same deduction allowed to business assessees u/s 35CCA). In this case, the assessee should furnish a certificate as is required u/s 35CCA.
  4. 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. (Business assesees were allowed this deduction u/s 35AC. In this case as well, the assessee should furnish a certificate as is required u/s 35AC.

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