Section 135 of the Income-tax Act, 2025 — Deduction for Donations for Scientific Research or Rural Development (Old Section 80GGA)

In plain language

What Section 135 is about

Section 135 of the Income-tax Act, 2025 lets a taxpayer deduct money they donate for scientific research, social science or statistical research, and certain rural-development and allied causes, while computing their total income. It is the direct successor to the old Section 80GGA of the Income-tax Act, 1961, and applies from 1 April 2026 (Tax Year 2026-27). In plain words: if you give money to an approved research body or notified fund, and you do not run a business, the whole donation can be knocked off your taxable income.

Who can claim it

• Any assessee — individual, HUF, firm, etc. — whose gross total income does NOT include income under "Profits and gains of business or profession". This is the single most important gate.
• Typically claimed by salaried employees, pensioners, and people with only rental, interest, capital-gains or "other sources" income.
• If you have any business or professional income, you cannot use Section 135. Instead, a business claims a similar research-donation deduction under the business-computation route (successor to old Section 35), so the benefit is not lost — it just shifts to a different section.

What donations qualify

• Scientific research — sums paid to a research association whose object is scientific research, or to an approved University, college or other institution to be used for scientific research (approved under Section 45(3)(a)(i)).
• Social science or statistical research — sums paid to a research association, University, college or institution approved for this purpose (Section 45(3)(a)(ii)).
• Rural development and allied causes (legacy 80GGA scope) — sums paid towards approved rural-development programmes, notified funds for afforestation and conservation of natural resources, and notified poverty-eradication/rural development funds.

How much you can deduct

• The deduction is generally 100% of the amount donated, with no upper monetary cap on the qualifying donation itself.
• However, the deduction cannot exceed your income — it reduces total income, it does not create a refund on its own.

Key conditions and restrictions

• Cash limit of ₹2,000: Any donation above ₹2,000 must be paid in a non-cash mode — cheque, demand draft, UPI, NEFT/RTGS, net banking or card. Cash donations over ₹2,000 get no deduction.
• No double deduction: The same donation cannot be claimed again under any other section (for example, you cannot claim it here and also elsewhere).
• Protection if approval is later withdrawn: If the institution's approval is cancelled after you made the payment, your deduction still stands — you are not punished for the donee's later default.
• Verification through payee reporting: The deduction is allowed on the basis of information the donee (payee) reports to the tax authority, subject to the Board's risk-management verification. So donate only to bodies that file these statements and give you a valid receipt.

How it interacts with other sections

Section 135 sits alongside Section 133 (successor to Section 80G), which covers general charitable donations at 50%/100% with qualifying-limit caps. Section 135 is narrower but more generous — 100% deduction with no qualifying-limit ceiling for eligible research/rural donations — but only for non-business taxpayers. Businesses instead claim research donations under the business-income route (old Section 35). Both Section 133 and Section 135 are only useful under the old tax regime; most Chapter-VIII/deduction benefits are switched off if you opt for the default new regime.

Practical implications

• Always pay digitally and keep the stamped receipt showing the donee's name, approval/registration number and PAN.
• Check that the institution's approval is currently valid before donating.
• Salaried donors can claim this in their return; verify it reflects correctly in the pre-filled data driven by the donee's statement.