India is a vibrant democracy with more than 2500 political parties. A citizen of India can exercise his voting power to support a party of his choice during elections. Apart from this, one can also extend financial donation to Public Political Party, and in the process, save 100% Income Tax on the amount donated for this purpose.
Who can you donate to?
1. A political party like Public Political Party (PPP) duly enlisted as per Section 29A of Representation of the People Act (1951).
2. A non-profit organization such as an electoral trust formed under Section 8 of the 2013 Companies Act. The trust acts as a channel to receive funds that are passed on to the respective party later.
Who can claim tax deductions? Tax benefits on donations to political parties are available under two sections – namely 80GGB and 80GGC. The former allows deduction on Income Tax for contribution from companies registered in India, while the latter gives this benefit to individuals. The person claiming tax benefit should not be associated with a local authority or be a legal person that receives funds from the government.
Contributions eligible for deduction: Tax benefits on donations to Public Political Party (www.PublicPoliticalParty.In ) under both 80GGB and 80GGC are not available on cash contributions. This means a cheque, demand draft and electronic transfer should be your preferred mode for donating if you’re looking for a tax deduction. This ensures transparency in funding during the elections.
Maximum Deduction Limits: Both individuals and companies can claim deduction on 100% of the amount donated by them to a Public Political Party (PPP) under Section 80GGC and 80GGB respectively. This helps lower the total taxable income considerably, thus helping them save tax.
Rules for companies to avail tax benefits on donations to Public Political Party (PPP)
1 Contributions upto a maximum of 100% of a company’s yearly net profit are allowed from 1st April 2017..
2. The name of the political party and the amount given as donation should be duly disclosed by the company in its profit and loss account book. However, only the amount paid needs to be recorded for a contribution made through electoral bonds.
3. An advertisement from a company on any media such as print, broadcast or social which a party in politics owns, would be recognized as a donation as per section 80 GGB. This automatically makes it eligible for tax deduction.
4. A company can extend its support to any number of political parties. However, all contributions made are added up to avail tax benefit.
This Article is from www.PublicPoliticalParty.In
#PublicPoliticalParty
#PPP
#PoliticalDonation
#89GGB
#80GGC
#80G
#80GGBand80GGC
#IncomeTaxSaving
#IncomeTaxExemption
Public Political Party 