Section 80GGC → Section 138
Deduction in respect of contributions given by any person to political parties
Quick Answer
Section 80GGC of the Income Tax Act, 1961 (Deduction in respect of contributions given by any person to political parties) corresponds to Section 138 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80GGC
Section 80GGC of the 1961 Act sets out the rules on deduction in respect of contributions given by any person to political parties. 100% deduction for donations made by an individual to registered political parties or electoral trusts. Cash donations explicitly disallowed.
From 1st April 2026, the same subject sits at Section 138 of the Income-tax Act, 2025 — retained and renumbered as Section 138 of the Income-tax Act, 2025. Retained verbatim to ensure white-money political funding.
For Section 80GGC, the practical impact is rated High. The sole legal avenue for transparent political contributions.
Sec 80GGC
Provision Summary
100% deduction for donations made by an individual to registered political parties or electoral trusts. Cash donations explicitly disallowed.
Sec 138
Provision Summary
Retained verbatim to ensure white-money political funding.
Key Changes & Highlights
- Strictly integrated with Election Commission data to ensure only verified registered parties trigger the deduction.
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Frequently Asked Questions
What is Section 80GGC of the Income Tax Act, 1961 about?
Section 80GGC of the Income Tax Act, 1961 covers deduction in respect of contributions given by any person to political parties. 100% deduction for donations made by an individual to registered political parties or electoral trusts. Cash donations explicitly disallowed.
Which section replaces Section 80GGC in the Income-tax Act, 2025?
Section 80GGC of the Income Tax Act, 1961 maps to Section 138 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim to ensure white-money political funding.
What is the impact of the change to Section 80GGC under the new tax code?
The transition impact for Section 80GGC is rated High. The sole legal avenue for transparent political contributions.
What should I watch out for when Section 80GGC moves to the 2025 code?
Strictly integrated with Election Commission data to ensure only verified registered parties trigger the deduction. These points are specific to Section 80GGC (Deduction in respect of contributions given by any person to political parties).
Disclaimer: This mapping of Section 80GGC (Deduction in respect of contributions given by any person to political parties) to Section 138 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80GGC is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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