Section - 13A, Income-tax Act,1961-2020
Any income of a political party which is chargeable under the head
"Income from house property" or
"Income from other sources" or
"Capital gains" or any income by way of voluntary contributions received by a political party from any person shall be exempt from tax.
Provided that following conditions should be satisfied by such political party:
(a) keep and maintain such books of account and other documents as would enable the Assessing Officer to properly deduce its income therefrom;
(b) In respect of each such voluntary contribution other than contribution by way of electoral bond in excess of ₹20000, keep and maintain a record of such contribution and the name and address of the person who has made such contribution;
(c) The accounts of such political party are audited by an accountant
(d) Donation exceeding ₹2000 should be received by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed or through electoral bond.
(e) The treasurer of such political party or any other person authorised by that political party in this behalf has to submit a report under section 29C(3)of the Representation of the People Act, 1951 for a financial year.
(f) Furnish a return of income for the previous year in accordance with the provisions of section 139(4B) on or before the due date under that section.
Explanation.—
"electoral bond" means a bond referred to in the Explanation to section 3(3) of the Reserve Bank of India Act, 1934.
"political party" means a political party registered under section 29A of the Representation of the People Act, 1951.
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