There are two sections under which deduction is allowable in respect of contributions made to any Political Party.
Let us analyse them -
1. Section 80GGB of Income Tax
Under Section 80GGB of the Income Tax, any contributions made an Indian Company to any political party or an Electoral Trust is fully deductible from the gross total income.
The only condition attached with it is that the amount should be paid by way of cheque or electronic transfer. i.e. it should not be paid in Cash.
2. Section 80GGC of Income Tax
Under Section 80GGB of the Income Tax, any contributions made by any person (other than local authority or any artificial juridical person wholly or partly funded by the Government ) to any political party or an Electoral Trust is fully deductible from the gross total income.
The only condition attached with it is that the amount should be paid by way of cheque or electronic transfer. i.e. it should not be paid in Cash.
For both the above section, the political party will mean -
A political party registered under section 29A of the Representation of the People Act, 1951