Applicable to: Individuals, HUFs, Firms, AOPs, BOIs, and others (except companies)
This section provides a 100% tax deduction for contributions made to registered political parties or electoral trusts, promoting transparency in political funding.
Key Features (AY 2025-26)
1. Eligible Donors
- Individuals(including NRIs)
- HUFs
- Firms
- AOPs/BOIs
- Others(except companies, which use Section 80GGB)
2. Eligible Donees
- Political partiesregistered under Section 29A of the Representation of the People Act, 1951
- Electoral trustsapproved under the Electoral Trusts Scheme, 2013
3. Deduction Amount
- 100% of the contribution(no upper limit)
- Example:A ₹5 lakh donation reduces taxable income by ₹5 lakh
4. Payment Mode
- Non-cash only(cheque, draft, electronic transfer, electoral bonds)
- Cash donations are disallowed
5. Required Documents
- Receiptfrom the political party/trust (must include PAN & registration number)
- Proof of payment(bank statement/transaction record)
Comparison with Section 80GGB (for Companies)
| FEATURE | SECTION 80GGC (INDIVIDUALS/HUFS) | SECTION 80GGB (COMPANIES) |
| Applicability | Individuals, HUFs, firms, etc. | Only Indian companies |
| Deduction | 100% of contribution | 100% of contribution |
| Cash Donations | Not allowed | Not allowed |
| Disclosure | Must be reported in ITR | Disclosed in P&L account |
Conditions & Compliance
✅ Only for registered political parties/electoral trusts (verify via Election Commission’s PPRTMS portal)
✅ No double benefit (cannot claim the same donation under other sections like 80G)
❌ Cash donations are invalid (even if below ₹2,000)
Pro Tips
- Verify party registrationbefore donating (check ECI’s website)
- Use electoral bonds(if available) for anonymity (though post-SC ruling, stricter rules apply)
- Keep records for 6+ years(IT Department can scrutinize)
FAQs
Q: Can an NRI claim this deduction?
A: Yes, if they donate via permissible non-cash modes.
Q: Are donations to independent candidates eligible?
A: No, only registered political parties/electoral trusts qualify.
Q: Is there a minimum/maximum donation limit?
A: No limit, but must comply with RBI/FEMA rules for large foreign contributions.
Section 80GGC encourages transparent political funding by offering full tax deductions for non-cash contributions. While companies use 80GGB, individuals/HUFs/firms can leverage this section to reduce taxable income.
