Section 13B- Special Provision Relating to Voluntary Contribution Received By Electoral Trust

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Section 13B of the Income Tax Act, 1961 relates to the income of the electoral trust. It states when the income of an electoral trust is not to be included in its total income of the previous year.

As per Section 13B, when an electoral trust receives voluntary contribution then such contribution would not be included in the total income of such electoral trust for the previous year, provided that:-

1. The electoral trust donates ninety-five percent (95%) of the donation received by it during the said previous year with any surplus brought forward from earlier previous year to any political party registered under Section 29A of the Representation of the People Act, 1951.

2. The functioning of the electoral trust is as per the rules made by the Central Government.

In simple words, Section 13B of the Income Tax Act, 1961 states that when an electoral trust receives any voluntary contribution and donates 95% of such contribution to any political party registered under Section 29A of the Representation of People Act, 1951, then such voluntary contribution would not be chargeable under the total income of the electoral trust for the previous year.

Provided further that the electoral trust functions according to the rules made by the Central Government.