Party donations for tax benefits.

I have seen my trader friends to party donations to pay less taxes. As per the law we can donate 20% of our gross income to any party for the tax deduction benefits. Do any of the software engineers also donate to party?

7mo ago
MrRobot1992
MrRobot1992

Party donations == Taxes paid There is no difference between both.

UpsetLadle89
UpsetLadle89

Can you pls elaborate?

MrRobot1992
MrRobot1992

@UpsetLadle89 - What do you get in return for paying taxes as a citizen? Nothing.
So taxes and election donations are both just donations that goes down the drain.

Gbz
Gbz

This has become very risky in last couple of years, last year many people have got income tax notice. the reason of these notices are the political party which is taking donation only exists on Paper.

Nullpointerexception
Nullpointerexception
Visa7mo

Yes people do that all the time. Personally been doing it since 3 years. These are usually small parties (but registered with election commission). You can find these agents with a local CA in your city

Nullpointerexception
Nullpointerexception
Visa7mo

The amount of donation is directly deducted from your taxable. So if your taxable was 10L and you're showing donation of 3L then your taxable becomes 7L

Nullpointerexception
Nullpointerexception
Visa7mo

But yes this has been bit riskier off late. Advisable to do small amounts

SteelFee2
SteelFee2

Heard that middlemen are helping to evade tax using party donations.

Where do one find these middlemen?

sanki_insaan
sanki_insaan

But how does this help? Until you get it back in cash as black money. 😢

Retiredsoul
Retiredsoul

Yes you will get back after paying 5-10%

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