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As an individual with a sound financial capacity, if you contribute any amount as a donation towards scientific research and rural development, you will be entitled to a tax benefit as per Section 80GGA of the Income Tax Act, 1961.
Under Section 80GGA, 100% of the donated amount is eligible for deduction. However, cash donation exceeding ₹10,000 are not allowed for any deductions. This deduction can be availed by all taxpayers, except those who gain income or loss from a business or profession.
Contribution made towards a research association/college/university/other institution to be used for scientific research. [As approved under Section 35(1)(ii)]
Contribution made towards social science/statistical research/college/university for research purposes. [As approved under Section 35(1)(iii)]
Contribution made towards an association/institution which undertakes any program of rural development. [As approved under Section 35CCA]
Contribution made towards an association/institution engaged in the training of persons for implementing any program of rural development.
Contribution made towards any PSU/local authority/approved association which undertake developmental projects. [As approved under Sec 35AC]
Contribution made towards a notified Rural Development Fund/Fund for Afforestation or National Poverty Eradication Fund.
Not all deductions are eligible for rebate under Section 80GGA. It is wise to check your eligibility before applying for the same.
Section 35AC allows individuals who have an income or loss from a business/profession to enjoy the benefits of deductions under Section 80GGA. Deductions made under Section 35AC can be carried forward to the next year in the form of a loss.
Form 58A is mandatory for donors who seek a 100% tax deduction in case of contribution made towards NGOs/institutes.
Section 80GGA does not allow double deductions.
What is Section 80G?
Similar to Section 80GGA, Section 80G of the Income Tax provides tax benefit to individuals who have made a contribution to certain relief funds and charitable institutions.
How to claim a deduction?
You can claim a deduction while filing your income tax return with the following information - Name, PAN, and Address of Donor along with the amount of contribution.
What is the amount of donation for deduction under Section 80GGA?
The amount of deduction is 100% of the donation amount under Section 80GGA.