Income-tax Act, 1961Section 80GGC
- 100% deduction for contributions to registered political parties or electoral trusts
- Cash contributions not allowed
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 80GGC
DeductionsSection 80GGC → Section 137
Deduction for contributions to political parties and electoral trusts
Section 80GGC of the old Income-tax Act, 1961 · new section 137 under the Income-tax Act, 2025
New reference Section 137
Income-tax Act, 2025Section 137
- Same deduction, now section 137
- Non-cash contributions only
- Local authorities and Government-funded artificial juridical persons excluded
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; conditions unchanged.
Practice notes
- Claims are under scrutiny where the party or trust is not genuine; keep receipts and bank proof.
Frequently asked
What is section 80GGC called in the new Income Tax Act 2025?
Section 137: deduction for non-cash contributions to registered political parties or electoral trusts.
What is section 80GGC called in the new Income-tax Act, 2025?
Section 80GGC of the Income-tax Act, 1961 corresponds to Section 137 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 80GGC under the new Income Tax Act?
Renumbered; conditions unchanged.
Is section 80GGC still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 80GGC of the 1961 Act. Section 137 of the 2025 Act applies from tax year 2026-27.