Section 80GGA

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

Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession.

Mode of payment: Donations can be made in the form of a cheque or by a draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed is considered eligible for deductions.

Donations eligible under Sec 80GGA – Sum paid to

  • A research association which undertakes scientific research, or a sum paid to a college, university or any other institution to be used for scientific research that is all approved by the prescribed authority under Sec 35(1)(ii)
  • 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 must all be approved by the prescribed authority under section 35(1)(iii)
  • An approved association or institution which undertakes any program of rural development and is approved under Sec 35CCA
  • An approved association or institution which undertakes training of person(s) for implementing programs of rural development
  • A public sector company, local authority or an approved association or institution which carries out projects or schemes approved under Sec 35AC.
  • Notified Rural Development Fund
  • Notified Fund for Afforestation
  • Notified National Poverty Eradication Fund

If a deduction has been allowed under Sec 80GGA, such expenses shall not be deductible under any other provision of the income tax act.

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