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Relation between sec: 80gga & sec: 35(1)(ii), (iii)

C.A. R. Surya Prakash (CA FInal) (118 Points)

23 September 2011

As per sec: 35(1)(ii) a weighted deduction of 175% of any sum paid to approved & notified research associations / universities / colleges / other institutions - for scientific research

Sec:35(1)(ii) gives same deduction for social sciences & statistical research

Sec: 80gga also gives deduction for those institutions & associations approved u/s 35(1)(ii) & (iii)

what is the applicability of these sections??

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13 Replies

(Guest)

SEC 35(i)/(ii) is for whom who have PGBP income where as 80 GGA are for those who does not have inome under the head PGBP.

Pis correct me if i m m wrong.

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Jayesh (Internal Auditor) (214 Points)
Replied 23 September 2011

Dear Surya,

Section 35(1)(ii) provides weighted average deduction to those assesse who make payment to such notified institutions/colleges etc. and on the other hand these contribution received by such institution/college etc is available as deduction to them u/s 80 GGA.

Objective behind this : to encourage research (social/science/statistical) by such institution. Therefore, both (person who pays & institution who receives are provided this benefit under respective sections)

Hope this resolves your query.

C.A. R. Surya Prakash (CA FInal) (118 Points)
Replied 23 September 2011

Originally posted by : Jayesh
	Dear Surya, Section 35(1)(ii) provides weighted average deduction to those assesse who make payment to such notified institutions/colleges etc. and on the other hand these contribution received by such institution/college etc is available as deduction to them u/s 80 GGA.

sec: 80gga says "deduction is available for donations made to such associations, institutions,..... for the time being approved u/s 35(1)(ii) or (iii).

They specified "donation" the instiutions which receive these amount is no where involved in this section.

C.A. R. Surya Prakash (CA FInal) (118 Points)
Replied 23 September 2011

Originally posted by : pooja
	SEC 35(i)/(ii) is for whom who have PGBP income where as 80 GGA are for those who does not have inome under the head PGBP. Pis correct me if i m m wrong.

this looks appropriate in the given context. Thanks for sharing ur view pooja

(Guest)

Originally posted by : surya
	Originally posted by : pooja SEC 35(i)/(ii) is for whom who have PGBP income where as 80 GGA are for those who does not have inome under the head PGBP. Pis correct me if i m m wrong. this looks appropriate in the given context. Thanks for sharing ur view pooja

What I said correct may be i didnt get ur qustion pls eleborate.

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Jayesh (Internal Auditor) (214 Points)
Replied 23 September 2011

Sec-80GGA is available for only those assessee who doest not have income from PGBP in their computation. My earlier post was incorrect, sorry for that.

C.A. R. Surya Prakash (CA FInal) (118 Points)
Replied 23 September 2011

Hi Pooja

my question is regarding the eligibility for deduction u/s 35(1)(ii), (iii) & 80GGA

As u said, 80GGA deduction (100%) is applicable for all assesses whose income doesn't include PGBP.

And deduction u/s 35(1) applies for assesses who have PGBP

(Guest)

Section 35AC is available to assessees who have income from the head ‘business’ or ‘profession’. Therefore, for the assessees who do do not have income from business or profession, section 80GGA provides for deduction on donations made to eligible projects under section 35AC. Section 80GGA, is a broader section and deductions are also available for contributions made for scientific research under section 35CCA & 35CCB, which have been withdrawn. 100 per cent deduction is available under section 80GGA, subject to the available gross total income under section 80A. Therefore, unlike section 35AC, deduction under section 80GGA cannot be carried forward in the form of losses to next year .

(Guest)

35(1)(ii) &

80GGA(2)(a)

Deduction of 175% of sums paid to an approved scientific research association, which has as its object the undertaking of scientific research or to an approved university, college or other institution to be used for scientific research.

Deduction at 100% u/s 80 GGA (2)(a) for contribution to institution approved under section 35(1)(ii).

All assessees carrying on business or profession.

For assessees other than those with business income.

35(1)(iii) &

80GGA(2)(aa)

Deduction of 175% of sums paid to an approved university, college or other institution to be used for research in social science or statistical research.

Deduction at 100% u/s 80 GGA (2)(aa) for contribution to institution approved under section 35(1)(iii).

All assessees carrying on business or profession.

For assessees other than those with business income.

(Guest)

35AC &

80GGA(2)(bb)

Deduction of expenditure by way of payment of any sum to a public sector company/local authority/ approved association or institution for carrying out any eligible scheme or project.

Deduction at 100% u/s 80 GGA (2)(bb) for contribution to institution approved under section 35AC

All assessees carrying on business or profession.

For assessees other than those with business income

35CCA

80GGA(2)(d)/

80GGA(2)(e)

(a) Deduction of expenditure by way of payment to associations and institutions for carrying rural development programmes and a rural development fund set up & notified by the Central Government;

(b) Deduction of expenditure by way of payment to the National Urban Poverty Eradication Fund set up & notified by the Central Government.

Deduction at 100% u/s 80 GGA (2)(d) and (2)(e) for contribution to institution approved under section 35CCA

All assessees carrying on business or profession.