What is Tax Holiday? State the provisions of section 80(GGA)
Understand the Problem
The question is asking for explanations of two concepts in taxation: the definition of a tax holiday and the provisions of a specific legal section, 80(GGA). This requires understanding tax policy and relevant legal statutes.
Answer
Tax holiday: temporary tax reduction. Section 80GGA: 100% deduction for donations to research/rural development.
A tax holiday is a temporary reduction or elimination of a tax, typically granted by the government to boost economic activity. Section 80GGA of the Income Tax Act, 1961, provides a 100% tax deduction for donations made to scientific research or rural development in India.
Answer for screen readers
A tax holiday is a temporary reduction or elimination of a tax, typically granted by the government to boost economic activity. Section 80GGA of the Income Tax Act, 1961, provides a 100% tax deduction for donations made to scientific research or rural development in India.
More Information
Tax holidays are often used to encourage spending and investment by reducing the tax burden temporarily. Section 80GGA helps promote charitable donations towards scientific and rural advancement.
Sources
- What Is a Tax Holiday? How It Works, Examples, and Effectiveness - investopedia.com
- Section 80GGA of Income Tax Act - Policybazaar - policybazaar.com
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