Amendment of section 80GGC
16. In section 80GGC of the Income-tax Act, before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2014, namely:—
“Provided that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.”.
Notes on Clauses:
Clause 16 of the Bill seeks to amend section 80GGC of the Income-tax Act relating to deductions in respect of contributions given by any person to political parties.
Under the existing provisions of the said section, any sum contributed by any person, except local authority and artificial juridical person wholly or partly funded by the Government, to any political party or an electoral trust in the previous year, is allowed as deduction in computing the total income of such person.
It is proposed to amend the aforesaid section by inserting a proviso so as to provide that no deduction shall be allowed under this section in respect of any sum contributed by way of cash.
This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.