Any of the following incomes of a political party received by it from any person shall not be included in its total income of the previous year, on fulfillment of prescribed conditions:
Income from House Property; or
Income from Other Sources; or
Income by way of Voluntary Contributions (Donations); or
Conditions: –
1. If such political party keeps and maintains such books of accounts and other documents as would enable the assessing officer to properly deduce the income therefrom;
2. In respect of each such voluntary contribution [other than contribution by way of electoral bond] in excess of 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;
3. The accounts of such political party should be audited by the Chartered Accountant;
4. The said political party should receive any donation in excess of Rs 2,000 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.
Note:
1. No exemption shall be available for a financial year, if political party:
-
- Failed to submit a report under section 29 C of the Representation of the People Act for a financial year;
- Does not furnish a return of income for the previous year in accordance with provisions of section 139(4B) or before the due date under section 139(1).
2. If a person makes a donation to political party, then he shall get deduction under section 80GGB/80GGC from his total income of the donation so made. However, no deduction shall be allowed under section 80GGB/80GGC in respect of donations made in cash.
3. Political parties shall not be required to furnish the name and address of donors who contribute by way of electoral bond.
