Section 13A:
Special provision relating to incomes of political parties.
1Any 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 5
other than contribution by way of electoral
bond in excess of 6
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; 7
***
(c) the accounts of such political party are audited by an accountant as defined in
the Explanation below sub-section (2) of section 288 5
; and
5
(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 bank account 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):
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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:
5
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.
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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. Ins. by Act 29 of 1978, s. 2 (w.e.f. 1-4-1979).
2. The words “Interest on securities” omitted by Act 26 of 1988, s. 7 (w.e.f. 1-4-1989).
3. Ins. by Act 32 of 2003, s. 12 (w.e.f. 1-4-1979).
4. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).
5. Ins. by Act 7 of 2017, s. 11 (w.e.f. 1-4-2018).
6. Subs. by Act 46 of 2003, s. 8, for “ten thousand rupees” (w.e.f. 11-9-2003).
7. The word “and” omitted by Act 7 of 2017, s. 11 (w.e.f. 1-4-2018).
8. Ins. by Act 46 of 2003, s. 8 (w.e.f. 11-9-2003).
9. Subs. by s. 8, ibid., for the Explanation (w.e.f . 11-9-2003).