In this guide
What is the Section 80GGC deduction?
Section 80GGC of the Income-tax Act, 1961 allows a deduction for qualifying contributions made during the financial year to a political party or electoral trust. For AY 2026-27, the relevant period is 1 April 2025 to 31 March 2026.
The deduction is generally 100% of the eligible contribution. There is no separate rupee ceiling under Section 80GGC, but the claim cannot exceed the eligible contribution or the taxpayer’s gross total income. It reduces taxable income; it is not a tax rebate or a refund of the donation.
The deduction is available only under the old tax regime. For AY 2026-27, the new regime is the default. Making a contribution through a non-cash method does not make it deductible if you file under the new regime.
Who can claim Section 80GGC?
Section 80GGC covers eligible taxpayers who contribute to a qualifying political party or electoral trust. The section excludes:
- A local authority; and
- An artificial juridical person wholly or partly funded by the Government.
The Income Tax Department treats contributions by Indian companies under the separate Section 80GGB. Individuals and other eligible non-company taxpayers should check that they meet Section 80GGC’s conditions and use the correct return form.
A political party must be registered under Section 29A of the Representation of the People Act, 1951. Check the recipient’s status rather than relying only on its name or public profile. An eligible electoral trust is also a permitted recipient.
A contribution to a political party or electoral trust is claimed under Section 80GGC, not as a donation under Section 80G. TaxClear’s Section 80G guide explains the rules for other types of eligible donations.
Eligible payment methods and the cash restriction
A cash contribution cannot be claimed under Section 80GGC. Use a traceable non-cash method, such as:
- UPI;
- Cheque;
- IMPS;
- NEFT or RTGS; or
- Another non-cash payment method that creates a transaction record.
The receipt and payment record should match. Keep evidence showing the date, amount, recipient and transaction reference.
A receipt issued to you does not establish that you personally made the contribution. Do not claim a payment made by another person merely because you hold the receipt. Keep records that identify who paid, who received the contribution and how it was paid.
When a claim may be rejected
A claim may be disallowed if:
- The contribution was made in cash;
- The recipient does not meet the statutory conditions;
- You cannot substantiate the amount or transaction;
- The amount in the ITR does not match the receipt or payment record; or
- You file under the new tax regime.
A receipt alone does not prove that every Section 80GGC condition has been met. Verify the recipient and payment method before claiming.
Old tax regime versus new tax regime
Section 80GGC is a Chapter VI-A deduction and is not available under the new tax regime under Section 115BAC. To claim it, you must be eligible for the old regime and select that regime according to the rules and deadlines applicable to your income.
| Tax regime for AY 2026-27 | Section 80GGC claim | What to check |
|---|---|---|
| Old tax regime | Available if you and the contribution qualify | Report the eligible non-cash contribution in the ITR |
| New tax regime | Not available | Do not claim it just because the contribution was paid electronically |
If you do not have business or professional income, you can generally choose the old regime through the ITR, subject to the applicable deadline. If you have business or professional income, you may need to exercise the option through Form 10-IEA by the due date under Section 139(1). The rules for choosing or changing regimes depend on your circumstances.
Compare the tax payable under both regimes before deciding. The Section 80GGC deduction may reduce taxable income under the old regime, but it does not automatically make that regime more beneficial. Other deductions, exemptions, income and tax rates also affect the result.
For return-form selection and filing steps, see TaxClear’s ITR-1 filing guide for AY 2026-27. If you are unsure whether a deduction is properly supported, review TaxClear’s guide to unsupported deduction claims in ITRs.
How much can you deduct?
The deduction is based on the eligible contribution actually made during FY 2025-26. Section 80GGC does not set a separate maximum amount such as ₹50,000 or ₹1 lakh. The deduction is limited to the eligible contribution and cannot exceed gross total income.
Example: Riya has gross total income of ₹9,00,000 and contributes ₹40,000 through UPI to a qualifying political party during FY 2025-26. If she is eligible to use the old regime and meets the other conditions, she may claim ₹40,000 under Section 80GGC. The deduction reduces the income used to calculate tax; it does not mean that the government refunds ₹40,000.
If Riya made the same contribution in cash, it would not qualify. If she files under the new regime, she cannot claim Section 80GGC even if she paid by UPI and has a valid receipt.
Documents to keep
Keep a separate record for each contribution:
- The receipt or acknowledgement from the political party or electoral trust;
- The recipient’s name and PAN, where applicable;
- Evidence that the political party meets the Section 29A registration condition;
- Bank, UPI or payment-app proof showing the amount, date and transaction reference;
- The relevant bank statement or account record; and
- A copy of the filed ITR and acknowledgement.
Check that the receipt and payment evidence are consistent. If the receipt shows a different date or amount from the bank record, resolve the discrepancy before filing.
Do not create or alter a receipt to support a claim. If the recipient has not provided the required information, ask for a corrected receipt or confirmation. If you cannot verify a contribution, do not claim it simply because it appears in a spreadsheet or draft return.
How to claim Section 80GGC in your ITR
Use the return form that applies to your income and status for AY 2026-27. An individual can use ITR-1 only if all the form’s conditions are met. Capital gains, business or professional income, income limits and other circumstances may require a different ITR form.
When preparing the return:
- Select AY 2026-27 for income earned from 1 April 2025 to 31 March 2026.
- Confirm the tax regime. The new regime is the default; select the old regime only if you are eligible and have exercised the option correctly and on time.
- Open the Chapter VI-A deductions section and find Schedule 80GGC or the corresponding field in the filing utility.
- Enter the details requested, which may include the contribution date, political party’s name and PAN, contribution amount, transaction reference and bank IFSC.
- Claim only the eligible non-cash amount. Do not include a cash contribution in the deductible amount.
- Match the return details with your receipt and payment record.
- Review, submit and verify the return. Save the acknowledgement.
The online filing screen may differ from the offline utility. Follow the current ITR instructions for your form. The Income Tax Department’s ITR-1 guidance for AY 2026-27 asks for details such as the date, political party’s name and PAN, amount, transaction reference and bank IFSC when claiming this deduction.
AY 2026-27 deadlines and the change in tax law
AY 2026-27 relates to FY 2025-26 and remains governed by the Income-tax Act, 1961, even though returns are filed after the Income-tax Act, 2025 came into force.
The ordinary due date is 31 July 2026 for ITR-1 and ITR-2 filers. For non-audit business cases and trusts, the due date is 31 August 2026. Other categories may have different deadlines. Check the current Income Tax Department guidance for your return type and any applicable extension.
A belated return for AY 2026-27 may generally be filed by 31 December 2026 or before completion of assessment, whichever is earlier, subject to the applicable rules and late-filing fee. Missing the original due date can affect your ability to choose the old regime. Do not assume that filing a belated or revised return will allow you to make a late switch. Taxpayers with business or professional income should also check whether Form 10-IEA was filed on time.
Do not confuse AY 2026-27 with Tax Year 2026-27. This article covers contributions made in FY 2025-26 and reported for AY 2026-27 under the 1961 Act. Contributions made from 1 April 2026 belong to the next tax year and must be reviewed under the law and return instructions applicable to that year.
Common mistakes to avoid
- Claiming Section 80GGC under the new tax regime.
- Claiming a cash contribution.
- Failing to check the political party’s registration or the electoral trust’s eligibility.
- Reporting only a total when the ITR asks for recipient and transaction details.
- Choosing ITR-1 based only on salary, without checking the other eligibility conditions.
- Assuming an employer declaration completes the ITR claim.
- Waiting until after the due date to choose the old regime.
- Treating the deduction as a refund rather than a reduction in taxable income.
Frequently asked questions
What is the maximum deduction under Section 80GGC?
There is no separate rupee ceiling under the section. The deduction is limited to the eligible non-cash contribution and cannot exceed gross total income.
Can I claim a political contribution made in cash?
No. A contribution made in cash is not deductible under Section 80GGC.
Can I claim Section 80GGC under the new tax regime?
No. Section 80GGC is unavailable under the new tax regime under Section 115BAC.
Does every political party qualify?
The party must meet the registration condition under Section 29A of the Representation of the People Act, 1951. Verify the recipient’s identity and retain the receipt and payment records.
Can I contribute to an electoral trust and claim the deduction?
Yes, if the trust is eligible and the other Section 80GGC conditions are met. Keep the trust’s receipt and traceable payment record.
What if I forgot to report the contribution?
Check whether a revised return is available and whether you selected the old regime within the applicable deadline. A revised return does not bypass the rules for choosing the old regime.
