New ITR Forms Require More Details for Section 80G and 80GGC Deductions
En resumen
- New Income Tax Return (ITR) forms for AY 2026-2027 mandate additional details for Section 80G and 80GGC deductions.
- Taxpayers must now provide transaction reference numbers, bank IFSC codes for 80G donations, and the political party's name and PAN for 80GGC contributions.
Resumen generado por IA
Por qué importa
Income Tax Return (ITR) forms have been updated for AY 2026-2027 to include enhanced reporting for tax deductions under Sections 80G and 80GGC. These changes aim to improve the traceability of charitable and political contributions.
For AY 2026-2027, Income Tax Return (ITR) forms have been updated to reflect the enhanced reporting requirements in respect of tax deductions like Section 80G, 80GGC, and others.
Section 80G is used by individuals and other taxpayers to get tax deduction in lieu of donating money to charitable institutions or relief organisations. Section 80GGC is also used for getting tax deductions but for donating money to a political party.
Here's the additional reporting which needs to be done now:
Schedule 80G seeks the IFSC and Transaction Reference Number
ITR 1 to 6
Taxmann research says that the new ITR forms seek the disclosures in respect of the deductions claimed for donations made to specified funds, charitable institutions, or relief organisations under Section 80G.
This schedule 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.
The new ITR forms have introduced the following two additional reporting requirements in the Schedule for claiming deductions:
Transaction reference number for UPI transfers or the cheque/IMPS/NEFT/RTGS reference number, and
IFS code of the bank.
Name and PAN of the political party to be furnished under Schedule 80GGC
ITR 1 to 6
Taxmann research says that Schedule 80GGC of the ITR is used to claim a deduction for contributions made to political parties or electoral trusts under Section 80GGC.
The existing schedule requires the taxpayer to enter the contribution date and the amount given, specifying how much was paid in cash and how much through other modes like 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.
Also read: What is Section 80G and how does it help save income tax under the old tax regime?
The new ITR forms require two additional details from the taxpayer seeking a deduction under section 80GGC. Taxpayers have to provide the name of the political party and its PAN under Schedule 80GGC.
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Preguntas abiertas
- What are the penalties for non-compliance?
- Will there be grace periods for these new requirements?
