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

1 [Special provision relating to incomes of political parties. 13A. Any 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 8 [ other than contribution by way of electoral bond ] in excess of 5 [ 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; 9 [ **** ] ( c ) the accounts of such political party are audited by an accountant as defined in the Explanation below sub-section (2) of section 288 10 [ and ] : 11 [ (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 13 [ bank account or through such other electronic mode as may be prescribed ] 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): ] 6 [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 .] 12 [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. ] 7 [ 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). ] **************** NOTES:- 1. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 1978 w.e.f. 01-04-1979 2. Omitted vide Section 7 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, Interest on securities , 3. Inserted vide Section 12 of the Finance Act, 2003 w.e.f. 01-04-1979 4. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, Income-tax 5. Substituted vide Section 8 of the Election and Other Related Laws (Amendment) Act, 2003 w.e.f. 11-9-2003 before it was read as, ten 6. Inserted Section 8 of the Election and Other Related Laws (Amendment) Act, 2003 w.e.f. 11-9-2003 7. Substituted Section 8 of the Election and Other Related Laws (Amendment) Act, 2003 w.e.f. 11-9-2003 before it was read as, Explanation.- For the purposes of this section, political party means an association or body of indi vidual citizens of India registered with the Election Commission of India as a political party under paragraph 3 of the Election Symbols (Reservation and Allotment) Order, 1968, and includes a political party deemed to be registered with that Commission under the proviso to sub-paragraph (2) of that paragraph. 8. Inserted vide Section 11 of the Finance Act, 2017 w.e.f. 01-04-2018 9. Omitted vide Section 11 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as, and 10. Inserted vide Section 11 of the Finance Act, 2017 w.e.f. 01-04-2018 11. Inserted vide Section 11 of the Finance Act, 2017 w.e.f. 01-04-2018 12. Inserted vide Section 11 of the Finance Act, 2017 w.e.f. 01-04-2018 13. Substituted vide Section 8 of the Finance (No. 2) Act, 2019 w.e.f. 01-04-2020 before it was read as, bank account