Deduction in respect of certain donations for scientific research or rural development - Section 80GGA - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of certain donations for scientific research or rural development - Section 80GGA This deduction is for donations made for Scientific Research or Rural Development. The whole amount given as donation to the institutions specified u/s 80GGA is allowed as a deduction u/s 80GGA . It should be noted that this deduction for donation specified to institutions u/s 80GGA is only available to those taxpayers who don t have any income from any business/profession (Business assessee allowed this deduction u/s 35CCA). Mode of payment - Donation ca be given in cash or by cheque or draft. However, no deduction shall be allowed u/s 80GGA in respect of cash contribution - exceeding Rs. 10,000/- for the A.Y. 2013-14 to 2020-21, upto 31.05.2020 exceeding ₹ 2000/- from the A.Y. 2021-22. 100% Deduction is available in respect of payments made during the financial year to any of the following institutions:- i. 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) ii. 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 ) iii. 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 . iv. 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 assessees were allowed this deduction u/s 35AC ). In this case as well, the assessee should furnish a certificate as is required u/s 35AC. v. To a notified Rural Development Fund. vi. To notified National Poverty Eradication Fund NOTE:- Adjusted Total Income: Adjusted Gross Total Income is the gross total income (sum of income under all heads) reduced by the aggregate of the following: Amount deductible under Sections 80CCC to 80U (but not Section 80G ) Exempt income Long-term capital gains Income referred to in Sections 115A , 115AB , 115AC , 115AD and 115D , relating to non-residents and foreign companies Explanation . For the removal of doubts, it is hereby declared that the claim of the assessee for a deduction in respect of any sum referred under this section in the return of income for any assessment year filed by him, shall be allowed on the basis of information subject to verification in accordance with the risk management strategy formulated by the Board from time to time. Filling of statement of donation by donee to cross check claim of donation by donor - W.e.f. October 1, 2020, an entity which get donation/ contribution u/s 80GGA is required to upload a statement of donation / contribution in prescribed form to the prescribed authority. The donor will get deduction u/s 80GGA on the basis of statement of donation/ contribution submitted by the donee - entity. Donor not affected if approval of donee entity is withdrawn - Deduction available u/s 80GGA shall not be denied merely on the ground that after the contribution made by the assessee to above institutions, the approval granted to these institutions has been withdrawn. In other words, contribution to these institution will be qualified for deduction even if the date of making contribution, the approval granted to these institutions has been withdrawn.