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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. Now you can scroll down below n check more details regarding “Section 80GGA – Deduction for Donation – Scientific Research”

Section 80GGA – Deduction for Donation – Scientific Research

Section 80GGA CAknowledge

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.

Which Amounts would qualify as deduction here?

The following donations would qualify for deduction under this section    –

1. Any sum paid by the assessee in the previous year 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 and

2. Any sum paid by the assessee in the previous year to an association or institution which has as its object the undertaking of any programme of rural development to be used for carrying out any programme of rural development approved by the prescribed authority for the purpose of section 35CCA or to an institution or association which has as its object the training of persons for implementing programmes of rural

It is, however, essential that in respect of both the aforesaid donations, the association or institution to which the donation is given must be approved by the prescribed authority; in the case of donation for scientific research, the donation must be to the institution approved under section 35(1)(ii) whereas in the case of donation for rural development the institution or association must be approved by the prescribed authority under section   35CCA(2).

3. Any sum paid to a Research Association which has as its object the undertaking of research in social science or statistical research, University, College or other institution to be used for research in social science or statistical research.

Such Research Association, University, College or institution must be approved under section 35(1)(iii).

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4. Any sum paid 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

However, the assessee must furnish a certificate referred to in section 35AC from such public sector company or local authority or association or   institution.

The expression – National Committee and – eligible project or scheme shall have the meanings respectively assigned to them in the Explanation to section 35AC.

What are the restrictions on deduction?

They are as follows:

  1. No deduction under this section would be allowed in the case of an assessee whose gross total income includes income which is chargeable under the head ―Profits and gains of business or profession.
  2. 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.
  3. 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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About CA Ridhi Dhoot

The writer is a Chartered Accountant & a Licentiate Company Secretary. You can reach out to her at [email protected]

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