Sections 135 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VIII allows deductions for certain payments. Section 135 covers sums paid to approved scientific research and social science or statistical research bodies; section 136 covers contributions by an Indian company to registered political parties and electoral trusts; and section 137 covers contributions by any other assessee, with two exclusions. Each rules out cash in its own way. This article reads the three sections as per the Income-tax Act, 2025 as amended by the Finance Act, 2026; later amendments, rules and notifications should be checked. For help choosing and documenting deductions, see our tax planning advisory.
Section 135 deducts any sum paid to a research association or approved University, college or institution for scientific research or for social science or statistical research, but not if the assessee has business or profession income in gross total income, and not if the contribution is in cash exceeding Rs. 2,000. Sections 136 and 137 allow a deduction for the amount contributed other than by way of cash to a political party registered under section 29A of the Representation of the People Act, 1951, or an electoral trust: section 136 for an Indian company, section 137 for any other assessee except a local authority and an artificial juridical person wholly or partly funded by the Government.
Section 135: scientific research, social science and statistical research
The deduction: sub-section (1)
In computing total income there is deducted, as per the section, any sum paid in the tax year to:
- (a) a research association whose object is the undertaking of scientific research, or a University, college or other institution approved for the purposes of section 45(3)(a)(i) to be used for scientific research; and
- (b) a research association whose object is the undertaking of research in social science or statistical research, or a University, college or other institution approved for the purposes of section 45(3)(a)(ii) to be used for research in social science or statistical research.
The text of section 135(1) says "any sum paid" and prints no percentage or ceiling. The approvals are those under section 45(3).
When the deduction is not allowed: sub-section (2)
Deduction is not allowed if:
- (a) the assessee's gross total income includes income chargeable under the head "Profits and gains of business or profession"; or
- (b) the contribution is made in cash exceeding Rs. 2,000.
Other rules
- Sub-section (3). The deduction is not denied merely because, after the payment, the approval of the association, University, college or institution has been withdrawn.
- Sub-section (4). The claim in the return is allowed on the basis of information about the sum furnished by the payee to the prescribed income-tax authority (or a person authorised by it), subject to verification as per the risk management strategy formulated by the Board from time to time.
- Sub-section (5). Where a deduction has been claimed and allowed for a payment of the nature referred to in the section, no deduction for that payment is allowed under any other provision of the Act in any tax year.
Example (invented). Mehul, a salaried employee with no business or profession income, pays Rs. 10,000 by cheque to a research association with the object of undertaking scientific research. Subject to the conditions, the sum of Rs. 10,000 is deductible under section 135(1)(a). Had he paid Rs. 5,000 in cash, the deduction would be disallowed under sub-section (2)(b), since the cash exceeds Rs. 2,000; a cash payment of Rs. 1,500 would not be disallowed on that ground. If Mehul also earned business income, sub-section (2)(a) would bar the deduction.
The reference to "scientific research" has a meaning in section 66(27); see our article on section 66(27) to (40), though that definition is stated for Part D of Chapter IV.
Section 136: contributions by companies to political parties
An assessee being an Indian company is allowed a deduction for the amount contributed by it, 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 an electoral trust.
For the section, "contribute", with its grammatical variations and cognate expressions, has the meaning in section 182 of the Companies Act, 2013. The Representation of the People Act, 1951 and the Companies Act, 2013 are other laws; check them.
Section 137: contributions by any other assessee
An assessee, other than a local authority and an artificial juridical person wholly or partly funded by the Government, is allowed a deduction for the amount contributed by him, 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 an electoral trust.
Section 137 is a single paragraph. It does not mention a ceiling, a certificate, or the Indian-company limitation of section 136; it applies to "an assessee", subject to the two exclusions.
Example (invented). Bharat Fabrics Pvt. Ltd., an Indian company, contributes Rs. 5,00,000 by bank transfer to a registered political party. Section 136 allows a deduction of Rs. 5,00,000. If the same company had contributed Rs. 5,00,000 in cash, no deduction would be allowed because the deduction covers only the amount contributed other than by way of cash. Separately, Dilip, an individual, contributes Rs. 40,000 by cheque to an electoral trust. Section 137 allows a deduction of Rs. 40,000.
Side-by-side
| Point | Section 135 | Section 136 | Section 137 |
|---|---|---|---|
| Who | Any assessee, but not one with business or profession income in gross total income | Indian company | Any assessee other than a local authority and an artificial juridical person wholly or partly funded by the Government |
| Paid to | Research association or approved University, college or institution | Registered political party or electoral trust | Registered political party or electoral trust |
| Amount | "Any sum paid" | Amount contributed other than by cash | Amount contributed other than by cash |
| Cash | Not allowed if cash exceeds Rs. 2,000 | No deduction for cash | No deduction for cash |
| Other | Payee reports to the authority; approval withdrawal does not deny; no double deduction | "Contribute" as in section 182 of the Companies Act, 2013 | Two exclusions in the opening words |
Where else donations are covered
Section 133 deals with donations to the National Defence Fund and a list of other funds and institutions; see the live note on section 133. Section 134 deals with rent paid; see section 134. The gateway rules for all Chapter VIII deductions are in section 122: the total of deductions cannot exceed gross total income.
Need help documenting your donations?
A donation deduction depends on the payee, the mode of payment and, in section 135, on the payee's information. Our tax planning advisory team can help you check these before you file.
Key takeaways
- Section 135 allows "any sum paid" to the named research bodies, but not to those with business income, and not for cash above Rs. 2,000.
- Sections 136 and 137 allow only non-cash contributions to registered political parties and electoral trusts.
- Section 136 is for Indian companies; section 137 for other assessees except a local authority and an artificial juridical person wholly or partly funded by the Government.
- A deduction claimed under section 135 cannot be claimed under any other provision.
- Withdrawal of approval after the payment does not by itself deny the section 135 deduction.
Read next
- Sections 138–139: infrastructure undertakings and SEZ developers
- Sections 125, 130, 131 and 132: Agnipath, housing loan and electric vehicle
- Section 133: donations deduction
- Income-tax Act 2025 Chapter VIII
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.