Section 80GGA Deduction for Donation For Scientific Research

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Section 80GGA Deduction for Donation For Scientific Research, Detailed Analysis of Section 80 GGA, We all know that Section 80G provides a comprehensive list of deductions available for donations. Here, let us do a detailed analysis of Section 80GGA that is Deduction in respect of Donations for Scientific Research & Rural Development. 

Section 80GGA – Deduction for Donation – Scientific Research

Section 80GGA grants deduction in respect of the donations made for scientific research or rural development by any assessee not having income chargeable under the head – Profits and Gains of Business or Profession.

  • Deduction towards Donations made for Scientific Research or Rural Development
  • Donation are eligible for deduction under the below categories

Research Association or University, College or other Institution for

  • Scientific Research
  • Social Science or Statistical Research

Association or Institution for 

  • Rural Development
  • Conservation of Natural Resources or for Afforestation

PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project

Funds notified by Central Government for

  • Afforestation
  • Rural Development

Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹  2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession

Which Amounts would qualify as deduction here?

The following donations would qualify for deduction under this section    –

Section 80GGA provides 100 % deduction to an assessee (other than an assessee whose total gross income includes income chargeable under the head “profits and gains of business or profession”) in respect of the following payments/donations:

  • a) Sums paid to a research association which has, as its object the undertaking of scientific research, or to a university, college or other institution to be used for scientific research where such association, university, college or institution has been approved by the prescribed authority for the purpose of Section 35(1)(ii).
  • b) any sum paid by the assessee in the previous year to a research association which has as its object the undertaking of research in social science or statistical research or to a University or college or other institution to be used for social science or statistical research where such association or university college or institution is for the time being approved by the prescribed authority for the purpose of Section 35(1)(iii).
  • c) Sums paid to an approved association or institution which has as its object the undertaking of any programme of rural development, to be used for the purposes of carrying out any programme of rural development approved for the purposes of Section 35CCA provided the assessee furnishes the certificate referred to in Section 35CCA(2).
  • d) Sums paid to an approved association or institution which has as its object the undertaking of any programme of rural development provided the assessee furnishes a certificate referred to in Section 35CCA(2A).
  • e) any sum paid by the assessee in the previous year to a public sector company or a local authority or an association or institution approved by the National Committee for carrying out any eligible project or scheme, provided the assessee furnishes a certificate referred to in Section 35AC(2)(a).
  • f) For the purposes of this clause, ‘National Committee’ means the committee constituted by the Central Government from amongst persons of eminence in public life, in accordance with the rules made under Income-tax Act, 1961 and “eligible project or scheme” means such project or scheme for promoting the social and economic welfare of, or the uplift of, the public as may be notified by Central Government on the recommendations of the National Committee.
  • g) Sums paid before April 1, 2002, to an approved association or institution which has as its object the undertaking of any programme of conservation of natural resources or afforestation to be used for carrying out any programme of conservation of natural resources or of afforestation approved under Section 35CCB(2).
  • h) Sums paid to the National Fund for Rural Development set up and notified by the Central Government for the purpose of carrying out rural development. This section also provides that where deduction under this section is claimed and allowed, the deduction will not be allowed in respect of the same payment under any other provision of the Act for the same or any other assessment year. i) any sum paid by the assessee in the previous year to the National Urban Poverty Eradication Fund set up and notified by the Central Government.

No deduction shall be allowed under this section in respect of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.

What are the restrictions on deduction?

They are as follows:

  • No deduction under this section would be allowed in the case of an assessee whose total gross income includes income which is chargeable under the head – Profits and gains of business or profession.
  • Where a deduction under this section is claimed and allowed for any assessment year, deduction shall not be allowed in respect of such payment under any other provisions of the Act for the same or any other assessment year.
  • No deduction shall be allowed in respect of donation of any sum exceeding Rs. 10,000/- unless such sum is paid by any mode other than cash.

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