The deduction is available in respect of the payments made during the previous year to the following institutions:
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to an approved research association, university, college or other institution to be used for scientific research (Business assessees were allowed this deduction u/s 35);
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to an approved research association which has as its objects the undertaking of research in social sciences or statistical research or to university, college or other institution for research in social science or statistical research (Business assessees were allowed this deduction u/s 35);
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to an association or institution engaged in any approved programme for rural development, or which is engaged in training of persons for implementation of rural development programmes, or to a notified rural development fund or to the notified National Urban Poverty Eradication Fund (Business assessees were allowed this deduction u/s 35CCA). In this case the assessee should furnish a certificate as is required under section 35CCA;
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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 scheme (Business assessees were allowed this deduction u/s 35AC). In this case also the assessee should furnish a certificate as a required under section 35AC.
Who can Claim Deduction -
An assessee (other than an assessee whose gross total income includes income chargeable under the head “Profits and gains of business or profession”) can claim deduction under section 80GGA.
What is the Qualifying Expenditure -
Donation/contribution should be given to an approved research association, university, college or other institution to be used for scientific research or rural development. A contribution can also be given for the purpose of eligible project/scheme under section 35AC or for the purpose of notified National Fund for Rural Development or notified National Urban Poverty Eradication Fund. 149.1
Amount of Deduction under Section 80GGA -
100 % for the aforesaid Donation or Contribution is Deductible.
Donation can be given in cash or by cheque or draft.
However, no deduction shall be allowed under section 80GGA in respect of a cash contribution (exceeding Rs. 10,000). |
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