Section 136
Section 136: deduction for a company's contribution to a political party
Section 136 is the Income-tax Act, 2025's version of the deduction long known as "80GGB" - it allows an Indian company to deduct the amount it contributes to a registered political party or an electoral trust, provided the contribution isn't made in cash.
What Section 136 allows
An Indian company can deduct the full amount it contributes, other than by way of cash, during a tax year to a political party registered under Section 29A of the Representation of the People Act, 1951, or to an electoral trust.
"Contribute" carries the same meaning given to it in Section 182 of the Companies Act, 2013, which also governs the separate corporate-law limits and disclosure requirements for political contributions by companies.
Frequently asked questions
Can a company deduct a cash donation to a political party?
No - Section 136 specifically excludes contributions made by way of cash; only non-cash contributions (bank transfer, cheque, electoral bonds, etc.) qualify for the deduction.
Is this the same as "80GGB"?
Yes - the same deduction for corporate political contributions, now numbered Section 136 under the Income-tax Act, 2025.
Does this apply to a foreign company?
No - Section 136 is limited to an "Indian company." A different provision (Section 137) covers contributions by other persons.
Related sections
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Check your Section 136 deduction with our tax teamLast updated 9 September 2026