Income tax department
If you have donated to the political party under Section 80GGC of the Income Tax Act, 1961 and have claimed the same in your income tax return, then you can get a notice from the Income Tax Department. Now to help such taxpayers, the Income Tax Department has launched a new facility on the Tax Assist portal, so that you can easily answer the notice.
What is Section 80GGC?
Under Section 80GGC of the Income Tax Act, any person (eg jobbers, traders etc.) can claim for exemption from donation tax given to a recognized political party or electoral trust. This exemption was brought to increase transparency and promote political funding, but recently, the Income Tax Department has taken vigilance when the number of fake claims increased and has started this new initiative to prevent such misuse.
Got notice? Don’t ignore it
If there is an SMS or email on your mobile in which such claims have been told, do not ignore it. If your ITR can be under investigation, you can also be fined if wrong or unproven claims. That is why keep all the necessary documents related to your claim like receipt, bank payment proof etc. ready.
New message from Income Tax Department
The Income Tax Department said on social media, donated under Section 80GGC? Mix your claim with facts. If you get a notice, do not ignore it. Claiming wrong claim can cause investigation and penalty.
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– Income Tax India (@Inometaxindia) June 30, 2025
How to answer the notice?
If you have received a notice under Section 158BC of the Income Tax Act, then you have to go to the Income Tax Portal and submit the form ITR-B under the E-Proseding tab.
What to do if the claim is correct?
According to CA Ashish Neeraj, if your claim is correct and you have donated to a recognized political party, then there is no need to panic. Just answer the notice with the correct receipt and bank statement.
If the claim has gone wrong or not documents?
If accidentally claimed or you do not have evidence, you can file updated returns under ITR U Form Section 139 (8A). But right now this facility is available only for FY 2023-24 and 2024-25. This facility for 2021-22 and 2022-23 will be launched soon on the portal.
Can the claim be withdrawn?
Yes, if you want, you can withdraw the claim done under Section 80GGC. For this, file updated returns under 139 (8A) and submit tax. Also, give proof to the department within 7 days.
What will happen if the notice is ignored?
If you intentionally ignore the notice, the department can take action against you and impose a fine of up to 200% of the saved tax. If you have claimed political donations, then check your information again. Keep the correct document and answer on time so that any investigation or penalty can be avoided.