Deduction for Donations towards Scientific Research or Rural Development [Section 80GGA]
• Any assessee not having any income taxable under the head “Profits and Gains of Business or Profession” is eligible to claim a deduction for amounts contributed to specified associations or institutions for scientific research or rural development.
• No deduction shall be allowed for cash contributions exceeding Rs. 2,000.
• Eligible Donations:
Donations made to research associations approved under Section 35(1)(ii)/(iii); or universities, colleges, or other institutions approved under Section 35(1)(ii)/(iii), undertaking scientific or statistical research or social science research.
Donations made to associations or institutions undertaking approved rural development programmes under Section 35CCA, or associations or institutions with the objective of training persons for implementing rural development programmes. The assessee needs to furnish a certificate from such association or institution to claim a deduction under this provision.
Donations to notified rural development funds or the National Urban Poverty Eradication Fund are also eligible.
Donations to public sector companies, local authorities, or associations/institutions approved by the National Committee for projects promoting social and economic welfare or uplift of the public.
• Deduction allowed shall not be denied solely because approval to the institution or programme was withdrawn after the donation.
• 100% of the donation amount is deductible under this provision.
• If any amount has been claimed and allowed under Section 80GGA, no deduction shall be allowed under any other provision for the same amount.
• A deduction is allowed based on information furnished by the donee to the income tax department. It is subject to verification according to the risk management strategy.