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Section 13A of the Income Tax Act

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(A better topic may be suggested for this, such as Exemption of Political parties from Income tax in India )

This is a controversial section[1] of the Income Tax Act in India.

The act in Verbatim[2] states[3] that,

Special provision relating to incomes of political parties Any income of a political party which is chargeable under the head 2 ]" Income from house property" or" Income from other sources" 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 3 Assessing] Officer to properly deduce its income therefrom; (b) in respect of each such voluntary contribution in excess of ten 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; and (c) the accounts of such political party are audited by an accountant as defined in the Explanation below sub- section (2) of section 288.

Recently, there has been lot of uproar[4] by the civil society against this act. [5]

Political[6] parties have deposited huge cash after demonitization. BSP (Bahujan Samajwadi Party don;t have any donation[7] by cheque, 100% is cash). Congress[8] used to be the biggest party to get cash, now it is BJP.

  1. ^ http://www.taxdose.com/tax-exemption-to-political-parties-section-13a-income-tax/
  2. ^ http://www.lawnotes.in/Section_13A_of_Income-Tax_Act,_1961
  3. ^ http://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=act&cname=cmsid&cval=102120000000037124&k=&isdlg=1
  4. ^ http://timesofindia.indiatimes.com/india/political-parties-depositing-old-notes-in-banks-are-exempt-from-income-tax/articleshow/56023361.cms
  5. ^ http://economictimes.indiatimes.com/news/politics-and-nation/poliitcal-parties-exempted-from-scrutiny-for-cash-deposit-of-old-notes/articleshow/56022656.cms
  6. ^ http://www.timesnow.tv/newshour-shorts/video/%E2%80%98corruption-flows-from-donations-made-to-political-parties%E2%80%99/53082
  7. ^ http://yourfinancebook.com/why-political-parties-are-not-paying-tax-in-india/
  8. ^ http://www.rediff.com/news/slide-show/slide-show-1-tax-rebates-congress-tops-list-with-rs-300-cr-exemption/20120927.htm
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