TaxTMI 
TaxTMI 
Contradiction between 37(2B) and 80GGB,80GGC
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....ontradiction between 37(2B) and 80GGB,80GGC<br> Query (Issue) Started By: - Abishek M Dated:- 16-11-2025 Last Reply Date:- 12-12-2025 Income Tax<br>Got 4 Replies<br>Income Tax<br>Can Amount disallowed under section 37(2B) - Subscription to Brochures, Newsletters, Newspapers of a political party be allowed under as deduction sections 80GGC or 80GGB ? Please clarify. Reply By PRIYACHARAN SR:....
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.... The Reply: Hi, payments for brochures/newsletters/newspapers are not considered "contributions" under 80GGB/80GGC. They are promotional/advertisement expenses, and since section 37(2B) disallows them, they cannot be re-characterized as donations to claim deduction under 80GGB/80GGC. No, the amount disallowed under section 37(2B) cannot be claimed as deduction under section 80GGB or 80GGC. Rep....
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....ly By Abishek M: The Reply: Thankyou for the reply . But under section 80GGC, it is mentioned that "any sum contributed in previous year to any political party or electoral trust is allowed as deduction" Thats why the doubt arose.. Reply By PRIYACHARAN SR: The Reply: Subscription to brochures/newsletters/newspapers of a political party is not treated as a "contribution" under Sections 8....
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....0GGC/80GGB. It is specifically disallowed under Section 37(2B) and does not get converted into an eligible deduction under 80GGC/80GGB. Subscription/advertisement is not a "contribution" within the meaning of those sections. Only pure contributions/donations (non-cash, to registered political parties/electoral trusts) qualify for deduction under 80GGC/80GGB. Reply By Ryan Vaz: The Reply:....
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.... Detailed Explanation 1. Nature of expenditure under Section 37(2B) These are business payments (advertising, publication material, publicity). Law specifically prohibits deduction, irrespective of business purpose. 2. Conditions for deduction under 80GGB/80GGC The deduction applies only if: Payment is a contribution, not an expenditure incurred in exchange for a service. Contribution ....
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....is made via electronic means / cheque / draft (i.e., not cash). Political party issues proper receipt and reflects the contribution in its books. 3. Why subscription/advertisement cannot be treated as contribution Courts and CBDT interpretations treat "contribution" as a voluntary donation without quid pro quo. But: When you pay a political party for subscription to newsletters/brochures or a....
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....dvertisement, there is consideration received. Hence, it is not a contribution but a business transaction, though disallowed as a deduction. Therefore, the payment fails the definition of "contribution" under Section 29B of the Representation of the People Act. 4. No double route for deduction If lawmakers intended such payments to be eligible under 80GGB/80GGC, Section 37(2B) would not have b....
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....een enacted as an absolute disallowance.<br> Discussion Forum - Knowledge Sharing ....