Section 13A- Special Provision Relating to Income of Political Parties
Section 13A of the Income Tax Act, 1961 contains a special provision with regards to the income of political parties. This section states when the income of political parties is not to be included in the total income of such political parties.
As per Section 13A of the Act, the income of political parties is chargeable under the heads of “Income from House Property”, or “Capital Gains”, or “Income from Other Sources”, or any income by way of voluntary contributions received from any person shall not be included in the total income of such political parties of the previous year.
The section further states that such incomes as having been mentioned would not be chargeable only if the following conditions are met:-
The political party maintains and keeps such accounts and other documents that would enable the Assessing Officer to deduct the income of the political party.
When the political party receives a voluntary contribution over Rs. 20,000 (twenty thousand rupees), then it must maintain and keep the record of such contribution and the name, address, and other details of the persons who have made such contributions.
The accounts of the political party are audited by an accountant as defined in the Explanation below Section 288 (2).
Section 13A further states that if the political party has a treasurer or any other person authorized on this behalf to submit a report under Section 29C (3) of the Representation of the People Act, 1951 for a financial year, then the political party cannot get an exemption for such financial year under this Section.