Many taxpayers who have claimed deductions under Section 80GGC of the Income Tax Act, 1961, have received income tax notices. The Income Tax Department has enabled a new facility on its portal, allowing taxpayers who have received notices under Section 158BC of the Income Tax Act, 1961 on how to respond to such notices.
What is Section 80GGC?
Section 80GGC of Income Tax Act, 1961, allows individual taxpayers to claim deductions for contributions made to political parties or electoral trusts. These deductions encourage transparent political contributions and have specific eligibility criteria, documentation requirements, and deduction limits. Understanding the features and procedures of Section 80GGC helps taxpayers maximize benefits while complying with tax regulations. However due to rising instances of fake claim being made, the income tax department has taken this new initiative to curb the misuse of this deduction.
If you have received an SMS or email regarding your claim under this section, do not ignore it. Taxpayers are advised to review their ITRs carefully, as any incorrect or unsupported claim can lead to scrutiny, investigation, or even penalties. Make sure your claim is backed by proper documentation such as valid donation receipts and payment proofs to avoid potential issues.
The Income Tax Department has introduced “TAXASSIST" to support all taxpayers’ concerns. The Income Tax Department posted on social media, “DONATIONS UNDER 80GGC? Match Claim with Facts. Got an SMS/E-mail from the Income Tax Dept. Don’t ignore the communication. It relates to your claimed deduction for political donations. Review your ITR carefully, incorrect claims can lead to scrutiny or penalties.”
How to respond to notices from the Income Tax Department?
The Income Tax Department has asked taxpayers who have received notice under Section 158BC to now submit Form ITR-B via the e-Proceeding tab on the Income Tax portal. Read More
This article is referenced from
https://timesofindia.indiatimes.com/
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