Section 80GGA of Income Tax Act
Under Section 80GGA provides for tax deductions for donations made for scientific research or rural development.
This deduction is allowed to all assessees except those who have an income from a business and/or a profession.
Donations can be made through a cheque, a draft, or cash. However, cash donations over Rs 10,000 are not allowed as deductions.
100% of the amount donated or contributed is eligible for deductions.
It is applicable only an Old Regime.
Deduction amount is Rs 5,000 per month, 25% of the adjusted total income , Actual rent minus 10% of adjusted total income which ever is less.
List of donations are eligible ::
- Any sum paid to a research association that undertakes scientific research, or a sum paid to a college, university, or any other institution to be used for scientific research.
- Any sum paid to 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.
- Donations to a registered organisation that works for rural development.
- Any contribution raised by our government to support National Urban Poverty Eradication Fund.
- Donations to a notified Fund for Afforestation.