Did you know? If you donate to a political party, you can claim a 100% tax deduction on the donated amount! Let’s break it down in simple terms.

1. Who Can Claim the Deduction?

✅ Only Individual Taxpayers (both salaried and self-employed).
❌ Not available to companies, firms, or any other artificial entities (they can claim under Section 80GGB).

2. How Much Deduction Can You Claim?

👉 100% of the donated amount is deductible – there’s no upper limit on the deduction!
👉 However, cash donations are not allowed.

3. What Are the Conditions for Claiming Deduction?

🔹 The donation must be made to a registered political party or an electoral trust.
🔹 The donation must be made through non-cash modes (bank transfer, cheque, UPI, digital wallets, etc.).
🔹 Political parties must be registered under Section 29A of the Representation of the People Act, 1951.

4. How to Claim the Deduction?

📌 While filing your Income Tax Return (ITR-1 or ITR-2), enter the total donation amount under Section 80GGC.
📌 Maintain proof of payment, such as a bank statement, digital receipt, or acknowledgement from the political party.

Example Calculation

Let’s say your taxable income is ₹8,00,000 and you donate ₹50,000 to a political party via bank transfer.
✅ Your taxable income after deduction = ₹8,00,000 – ₹50,000 = ₹7,50,000
✅ You save tax on ₹50,000, reducing your tax liability.

Final Thoughts

💡 If you plan to donate to a political party, go cashless to claim the tax benefit. Ensure the party is registered, and always keep proof of donation.