13A Income Tax Act - Special provision relating to incomes of political parties

Section 13A of Income Tax Act 1961 - Special provision relating to incomes of political parties

1Any income of a political party which is chargeable under the head 2 *** "Income from house property" or "Income from other sources" or 3 Capital gains or any income by way of voluntary contributions received by a political party from any person shall not be included in the total income of the previous year of such political party:

Provided that-

(a) such political party keeps and maintains such books of account and other documents as would enable the 4 Assessing Officer to properly deduce its income therefrom;

(b) in respect of each such voluntary contribution 5 other than contribution by way of electoral bond in excess of 6 twenty thousand rupees, such political party keeps and maintains a record of such contribution and the name and address of the person who has made such contribution; 7 ***

(c) the accounts of such political party are audited by an accountant as defined in the Explanation below sub-section (2) of section 288 5 ; and

5 (d) no donation exceeding two thousand rupees is received by such political party otherwise than 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 electoral bond.

Explanation.- For the purposes of this proviso, "electoral bond" means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934 (2 of 1934):

8 Provided further that if the treasurer of such political party or any other person authorised by that political party in this behalf fails to submit a report under sub-section (3) of section 29C of the Representation of the People Act, 1951 (43 of 1951) for a financial year, no exemption under this section shall be available for that political party for such financial year:

5 Provided also that such political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) of section 139 on or before the due date under that section.

9 Explanation.- For the purposes of this section, "political party" means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).
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1. Ins. by Act 29 of 1978, s. 2 (w.e.f. 1-4-1979).

2. The words "Interest on securities" omitted by Act 26 of 1988, s. 7 (w.e.f. 1-4-1989).

3. Ins. by Act 32 of 2003, s. 12 (w.e.f. 1-4-1979).

4. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988).

5. Ins. by Act 7 of 2017, s. 11 (w.e.f. 1-4-2018).

6. Subs. by Act 46 of 2003, s. 8, for "ten thousand rupees" (w.e.f. 11-9-2003).

7. The word "and" omitted by Act 7 of 2017, s. 11 (w.e.f. 1-4-2018).

8. Ins. by Act 46 of 2003, s. 8 (w.e.f. 11-9-2003).

9. Subs. by s. 8, ibid., for the Explanation (w.e.f . 11-9-2003).