The newly notified income tax return forms for the assessment year 2026-27, that is, the financial year 2025-26, carry a series of revisions, with notable changes affecting individuals who contribute to political parties.
Taxpayers who contribute through bank transfers or UPI can avail deductions under Section 80GGC of the Income-tax Act, 1961, if they continue under the old regime.
One crucial aspect is that there is no upper limit on the deduction available for contributions to political parties. Take a taxpayer with a Rs 12 lakh salary: if the entire sum is donated to a registered political party, the full amount can be deducted under Section 80GGC, assuming the old regime is in use. The deduction, however, cannot be higher than the total income declared.
Fresh disclosures have been built into the new ITR forms, with taxpayers now expected to provide expanded information on donations to political and charitable organisations. For AY 2026-27, non-audit cases, including salaried taxpayers and pensioners, must file returns by July 31, 2026. The corresponding deadline for Tax Year 2026-27 is July 31, 2027.
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As per Taxmann, at present, taxpayers must presently report the date of donation and the amount contributed, while distinguishing between cash payments and those made via instruments, like cheques, UPI, NEFT or RTGS. The schedule further seeks transaction reference numbers and the relevant bank's IFSC code.
Under the updated ITR framework, individuals seeking relief under Section 80GGC must furnish two additional pieces of information, namely, the political party's name and its PAN.
The Central Board of Direct Taxes' (CBDT) latest ITR forms for AY 2026-27 mandate additional disclosures relating to donations made to political parties for claiming benefits under Section 80GGC of the Income Tax Act, 1961.
In comparison, the earlier AY 2025-26 forms required taxpayers to furnish in Schedule 80GGC the contribution date, amount, payment split between cash and other modes, and transaction details such as UPI reference numbers or cheque and electronic transfer information.
In a bid to bolster transparency, the CBDT has expanded reporting requirements in the AY 2026-27 ITR forms. Taxpayers must now mandatorily disclose the political party's name and PAN in Schedule 80GGC, a step aimed at improving compliance and enabling more effective scrutiny by officials.
Section 80G offers tax relief across categories of taxpayers: be it individuals, corporates, firms, HUFs or non-resident Indians. Contributions made to eligible institutions or funds qualify for deductions, which may be claimed at 50% or, in some cases, the full 100% of the donated sum.
As per Taxmann, the revised ITR forms have added fresh reporting requirements, requiring taxpayers to provide the transaction reference number, whether for UPI, cheque, IMPS, NEFT or RTGS, and the IFSC code of the bank.
Taxmann highlights that Section 80G requires taxpayers to report extensive information for every donation, including the type of contribution, applicable ceiling and deduction rate. In addition, the recipient's credentials, such as name, PAN and full address with city, state code and PIN, must be disclosed to ensure the donation is verifiable and made to a qualifying institution.
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