Did you donate to a political party or plan to do so in the future and claim an income tax deduction?
New ITR forms require extra disclosure, check what to report
Apr 8, 2026
Synopsis
New income tax return forms for Assessment Year 2026-27 demand greater detail on political party donations. Taxpayers seeking deductions under Section 80GGC must now provide the political party's name and PAN. This change aims to enhance transparency and traceability of contributions. Individuals donating through banking channels or UPI should be aware of these updated disclosure requirements.
The recently announced income tax return (ITR) forms for AY 2026-27 (FY 2025-26) have introduced several updates, especiallyfor those who donate money to political parties. If you donate through banking channels or UPI to political parties, know that under Section 80GGC of the Income Tax Act, 1961, you get a tax deduction for the donations under the old tax regime.
A key point to note is that there’s no cap on the amount you can claim as a tax deduction for donations to political parties . For example, if your salary is Rs 12 lakh and you donate the entire Rs 12 lakh to a registered political party, you can claim the full amount as tax deduction under Section 80GGC under the old tax regime. Just keep in mind, the donation amount cannot exceed your total income.
Now, the new ITR forms are asking for more detailed information regarding donations to political parties and other charitable institutions.
The due date to file income tax return (ITR) for AY 2026-27 is July 31, 2026 for students, pensioners, salaried persons and others who are not liable for income tax audit. However, note that for Tax Year 2026-27, the due date is July 31, 2027.
What’s changed under the new ITR forms for political party donation?
According to Taxmann research, the existing ITR schedule requires the taxpayer to enter the contribution date and the amount contributed, specifying how much was paid in cash and how much was paid through other modes such as cheque, UPI, NEFT, or RTGS. It also asks for details like the transaction reference number and the IFSC code of the bank through which the payment was made.
The new ITR forms require two additional details from the taxpayer seeking a deduction under Section 80GGC. Taxpayers are required to provide the name of the political party and its PAN under Schedule 80GGC.
Chartered Accountant Avinash Kumar Rao, Partner at Mohindra & Associates, says that the newly notified ITR forms reflect a clear shift towards data-backed compliance and deeper reporting alignment. Enhanced disclosure requirements for deductions including payment trail details like UPI reference and banking information, indicate a stronger focus on curbing misuse of donation claims.
Schedule 80G seeks disclosures regarding deductions claimed for donations
Chartered Accountant Abhishek Soni says that Section 80G allows tax deductions for donations made to certain charitable institutions or funds. The deduction is available to individuals as well as companies.
80G deduction can be claimed by individuals, companies, firms, Hindu Undivided Family, NRIs, and other persons. The deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds. The deduction can be claimed up to a maximum of 50% or 100% of the donated amount, depending on the institution or fund to which the donation under 80G has been made.
Taxmann research says that Section 80G requires the taxpayer to provide detailed information for each donation, including the type of donation, the applicable limit, and the allowed deduction percentage. It also asks for the name, PAN, and complete address of the donee, along with the city, state code, and pin code, to ensure that the donation is traceable and made to an eligible institution.
According to Taxmann research, the new ITR forms have introduced the following two additional reporting requirements in this Schedule for claiming deductions: (a) Transaction reference number for UPI transfers or the cheque/IMPS/NEFT/ RTGS reference number, and (b) IFS code of the bank.
[The Economic Times]
