📌 Overview of Section 80GGC
Section 80GGC of the Income Tax Act, 1961 provides a 100% tax deduction to individuals (excluding companies and firms) for donations made to registered political parties or electoral trusts. To be eligible:
- The donation must be made through non-cash modes such as cheque, bank transfer, or UPI.
- The recipient must be a political party registered under Section 29A of the Representation of the People Act, 1951 or an approved electoral trust.
⚠️ Recent Developments – Increased Scrutiny by the Income Tax Department
In recent assessment years (especially AY 2023–24 and AY 2024–25), the Income Tax Department has significantly intensified its monitoring of deductions claimed under Section 80GGC. Individuals claiming high-value deductions have been receiving notices, emails, SMS alerts, and in some cases, even personal visits from tax officers.
📩 SMS and Email Alerts for Donations of ₹5 Lakh and Above
If you have claimed a donation of ₹5 lakh or more under Section 80GGC in your Income Tax Return, you may receive an SMS or email from the Income Tax Department. These alerts are part of a preliminary verification process and indicate that your donation claim may be flagged for detailed scrutiny.
🚶♂️ Department Officials Visiting Offices for Awareness and Verification
To strengthen compliance and create awareness, the department has also begun visiting taxpayers’ offices and residences. These visits are part of a proactive initiative to:
- Educate taxpayers on the correct use of Section 80GGC.
- Verify the genuineness of large political donations.
- Collect preliminary information where claims appear disproportionate to income.
These visits are typically non-intrusive, but failure to respond or provide clarity could lead to further action.
❓What Should You Do If You Receive an SMS or Email Related to 80GGC?
If you receive an SMS or email from the Income Tax Department regarding your donation under Section 80GGC, here are the immediate steps you should take:
- Do Not Ignore the Message
- Treat the alert as an early warning that your claim may be scrutinized.
- Review Your ITR
- Confirm the amount, mode of donation, and the recipient political party’s name and details.
- Verify the Political Party’s Credentials
- Ensure that the party is registered under Section 29A of the Representation of the People Act.
- You can check the status on the Election Commission of India website.
- Gather Supporting Documents
- Bank statement or payment receipt showing the transfer of funds.
- Official receipt from the political party including their PAN and registration number.
- Any email or written acknowledgment of the donation.
- Prepare a Clean File
- Keep all documents ready in case a scrutiny notice is issued.
- If the department visits or sends an inquiry, you’ll need these documents for explanation.
- Seek Professional Help
- If unsure or unable to verify the legitimacy of the donation, contact a Chartered Accountant immediately for guidance.
🔍 Common Red Flags in 80GGC Deductions
- Donation claimed but no payment trail or receipt.
- High donation amounts compared to total income.
- Donation made to unregistered or unknown parties.
- Use of intermediaries or agents for “arranged” donations.
📰 Enforcement News Highlights
- Multiple raids and surveys have been conducted at premises of parties suspected of issuing fake donation certificates.
- Individuals across Bengaluru, Gujarat, Delhi, and Noida have received notices after claiming 80GGC deductions to entities that did not appear in official records.
- CBDT is working closely with the Election Commission of India to cross-verify political party details and donation records.
✅ Checklist if You’ve Claimed 80GGC Deduction
✔ Donation made digitally (not in cash)
✔ Registered political party or electoral trust recipient
✔ Receipt and bank proof in your name
✔ Amount consistent with your income profile
✔ Party details matched with ECI records
❌ Mistakes to Avoid
- Donating in cash (not eligible under law)
- Using agents or brokers for tax-saving donations
- Claiming donations to unverified political parties
- Submitting ITR without backup proof of deductions
🛡️ Precautions for Future Filing
- Donate only to genuine and ECI-registered political parties.
- Make donations through traceable banking channels.
- Keep donation receipts, party PAN, and payment confirmation secure.
- Avoid schemes or agents offering refund manipulations via donations.
📢 Conclusion
With increasing digital tracking, data analytics, and field-level verification, the Income Tax Department is actively identifying and questioning suspicious claims under Section 80GGC. If you’ve received an alert, email, SMS, or office visit, do not panic—but do respond with complete and accurate documentation.
💼 Need Help with 80GGC Notices or Scrutiny Cases?
caindelhincr.in offers expert assistance in:
- Verifying your 80GGC claim
- Drafting replies to income tax notices
- Handling scrutiny and assessments
- Ensuring compliant and tax-efficient filing
📍 Visit Us: 286A, Third Floor, Patparganj, Mayur Vihar 1, Delhi 110091
📞 Call or WhatsApp: 9718046555
🌐 Website: www.caindelhincr.in