80GGA

Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession. 

Donations can be made through a cheque, a draft, or cash. However, cash donations over Rs 2,000 are not allowed as deductions. 100% of the amount donated or contributed is eligible for deductions. 

• Any sum paid to a research association that undertakes scientific research, or a sum paid to a college, university, or any other institution to be used for scientific research that is approved by the prescribed authority under Section 35(1)(ii)
• The sum paid to a research association which undertakes research in social science or statistical research, or sum paid to a college, university, or any other institution to be used for the same purpose,  and these must all be approved by the prescribed authority under Section 35(1)(iii)
• The sum paid to an approved association or institution which undertakes any programme of rural development and is approved under Section 35CCA
• The sum paid to an approved association or institution which undertakes training of person(s) for implementing programmes of rural development
• The sum paid to a public sector company, local authority or an approved association or institution which carries out projects or schemes approved under Section 35AC.
• The sum paid to notified Rural Development Fund
• The sum paid to notified Fund for Afforestation
• The sum paid to notified National Poverty Eradication Fund

If a deduction has been allowed under Section 80GGA, such expenses shall not be deductible under any other provision of the Income Tax Act.

80GG deduction will be allowed as lowest of below mentioned:

• Rs 5,000 per month
• 25% of the adjusted total income 
• Actual rent minus 10% of adjusted total income

Adjusted gross total income is the gross total income (sum of income under all heads) reduced by the aggregate of the following:

• Amount deductible under Sections 80C to 80U (but not Section 80G)
• Exempt income
• Long-term capital gains
• Short-term capital gains u/s 111A
• Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D