In accordance with a new circular released by the Central Board of Direct Taxes (CBDT), in addition to the deductions allowed to salaried class and other individuals and HUF for donations made as per Section 80 G (To know about Section 80G provisions. Click here), salaried class can also take benefit of the new provision that allows deduction for any amount contributed as donation for pursuing scientific research to a college, institution or university or any research association.

Donation granted to any institution or an association that is organizing and conducting a rural development programme can also be claimed by the salaried class income tax assessee for any amount. The provisions or the allowed deductions are part of the Section 80 GCA.

Donations made to National Committee for Promotion of Social and Economic Welfare approved local authority, institution, association or a public sector company is also eligible to be claimed for deduction.

How can the deduction for the donation be claimed?

To claim deduction for donation made for any scientific research or rural development pursuit, taxpayer needs to obtain the certificate from the institute or associate and attach it for the reference of the department of income tax u/s 35CCA. So, to be eligible to claim deduction, taxpayers needs to compulsorily collect certificates for donations.

Another point to take note of while claiming deduction for donations made is that as per section 80GGA, a salaried class individual is not provided with the deduction if his gross total income is chargeable under the head of profits and gains of business and profession. A self-declaration in lieu of this clause is also to be provided to the authorities.

Also, registration number issued by the department of income tax for a select term of 2 years is to be strictly quoted for claiming the tax benefit. This registered number of the trust has to be specified in the donation receipt along with its period of validity as the department can renew or revise it every two years.

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