If you recently made a claim of deduction of donation to a political party and received a notice from the Income Tax Department, don’t worry, you are not alone. Numerous taxpayers unknowingly claim such deductions under an incorrect section and then receive tax demands.
Difference Between Section 80G and 80GGC/80GGB
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Political donations should always be claimed under 80GGC/80GGB, not 80G
Why Did You Get a Tax Notice for 80G Deduction?
• Incorrect section claimed – You claimed under 80G rather than 80GGC/80GGB.
• Cash donation – Not deductible.
• Unregistered political party – Donations will be accepted only when the party is registered under Section 29A of
the Representation of People Act, 1951.
• Mismatch in disclosures – Party’s election returns do not correspond with your claim.
How to Deal with Income Tax Notice for Political Donation Deduction
Step 1: Identify the Type of Notice 143(1)(a) Intimation – Automated adjustment, disallowance of deduction.
143(2)/148 Notice – Scrutiny or reassessment.
Step 2: Check Your Donation Evidence Maintain bank transfer receipt / cheque / digital payment document. Verify
the political party is registered under Section 29A.
Step 3: If Your Claim is Correct Respond online with proof of donation. Attach party registration information if
present.
Step 4: If Your Claim is Wrong Accept departmental adjustment. Pay extra tax + interest (under Section 234B &
234C) via Challan 280. Amend your response in the e-proceedings section of the Income Tax Portal.
