Contributions that are more than what is permissible under the Companies Act cannot be deducted under Section 80GGB of the I-T Act.
In the article ‘Bringing political donations to book’ (Business Line, June 28), the author has expressed the view that “the bottom line therefore is while a company would fall foul of the company law if it breaches the 5 per cent norm, it can get away under the income-tax law and the claim of entire contribution would be allowed in computing its taxable income.” There could be another view on this.Section 293A
Section 293 of the Companies Act, operative from May 24, 1985, permits donations to political parties with certain riders. The important ones are: TO READ MORE CLICK........
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