Section 80GGA Income Tax Act | Rural Development |

Section 80GGA of Income Tax Act provides for Deduction for Expenditure incurred on Scientific Research and Rural Development. Section 80GGA is relatively newer section inserted into the Income Tax Act. The basic purpose of adding Section 80GGA is to shift the responsibility of Rural India Development to Businesses. Below we have covered certain provisions like Deduction limit under section 80GGA, The concept of National Committee under section 80GGA.

An assessee (other than an assessee whose gross total income includes income chargeable under the head “profits and gains of business or profession”) is entitled to 100% deduction in the computation of his total income in respect of the following payments/donations:

Scientific Research under Section 80GGA Income Tax Act

(a). Sums paid to a research association which has, as its object the undertaking of scientific research, or to a university, college or other institution to be used for scientific research where such association, university, college or institution has been approved by the prescribed authority for the purpose of Section 35(1)(ii).

(b). As inserted by Finance (No. 2) Act, 1991 with effect from 1.4.1992, any sum paid by the assessee in the previous year to a to a research association which has as its object the undertaking of research in social science or statistical research or to a University or college or other institution to be used for social science or statistical research where such such association or university college or institution is for the time being approved by the prescribed authority for the purpose of Section 35(1)(iii).

Rural Development under Section 80GGA Income tax Act

(C). Sums paid to an approved association or institution which has as its object the undertaking of any programme of rural development, to be used for the purposes of carrying out any programme of rural development approved for the purposes of Section 35CCA provided the assessee furnishes the certificate referred to in Section 35CCA(2).

(d). Sums paid to an approved association or institution which has as its object the undertaking of any programme of rural development provided the assessee furnishes a certificate referred to in Section 35CCA(2A).

National Committee under Section 80GGA Income Tax Act

(e) As inserted by the Finance (No. 2) Act, 1991 from the assessment year 1992-93, any sum paid by the assessee in the previous year to a public sector company or a local authority or an association or institution approved by the National Committee for carrying out any eligible project or scheme, provided the assessee furnishes a certificate referred to in Section 35AC(2)(a).

For the purposes of this clause, ‘National Committee’ means the committee constituted by the Central Government from amongst persons of eminence in public life, in accordance with the rules made under Income-tax Act, 1961 and “eligible project or scheme” means such project or scheme for promoting the social and economic welfare of, or the uplift of, the public as may be notified by Central Government on the recommendations of the National Committee.

conservation of natural resources under section 80GGA Income Tax Act

(f) Sums paid before April 1, 2002 to an approved association or institution which has as its object the undertaking of any programme of conservation of natural resources or afforestation to be used for carrying out any programme of conservation of natural resources or of afforestation approved under Section 35CCB(2).

National Fund for Rural Development under Section 80GGA Income Tax Act

(g) Sums paid to the National Fund for Rural Development set up and notified by the Central Government for the purpose of carrying out rural development. This section also provides that where deduction under this section is claimed and allowed, deduction will not be allowed in respect of the same payment under any other provision of the Act for the same or any other assessment year.

National Urban Poverty Eradication Fund  under Section 80GGA Income Tax Act

(h) any sum paid by the assessee in the previous year to the National Urban Poverty Eradication Fund set up and notified by the Central Government.

Note : No deduction shall be allowed under this section in respect of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.

Updated: May 5, 2018 — 5:47 am

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