Category Archives: Income Tax Deductions & Exemption

Section 10(38): Long-term Capital Gain on Transfer of Equity shares/units exempted if Covered under Securities Transaction Tax

As per S. 10(38), Long-term capital gains arising on transfer of equity shares or units of equity oriented mutual fund is not chargeable to tax from the A.Y. 2005-06 if such a transaction is covered by securities transaction tax. The securities transaction tax is applicable if equity shares or units of equity oriented mutual fund transferred on… Read More »

Section 80GGC: Deduction in respect of contribution given by any person to political parties

S. 80GGC was introduced by Finance Act 2009 closer to last General Elections to make election funding transparent and free of corruption, this section appears to be even more relevant in the current times. This section is meant for donations made by non-corporate assesses to political parties (for donations made by corporate assesses to political… Read More »

Section 80GGB: Deduction in respect of contribution given by Indian companies to political parties

S. 80GGB allows deduction to corporate organizations for any amount contributed to political parties. They can claim deduction ranging from 50% to 100% of the amount. There is also restriction on the deduction as per S. 293A of the Companies Act, 1956. S. 293A of the Companies Act, 1956 deals with the prohibition and restriction regarding political contribution.… Read More »

Section 80G: Deduction in respect of donations to certain funds, charitable institutions

In order to attract contributions to certain charitable funds and organizations established by the government it offers tax exemption on amounts you donate to them. These are covered u/s 80G. Under this section deductions are classified into four types: i) 100% deduction on donation ii) 50% deduction on donation iii) 100% deduction subject to qualifying… Read More »