Clause 73 - Deduction in respect of political contributions - Direct Taxes Code Bill, 2009

Deduction in respect of political contributions 73. (1) A person shall be allowed a deduction in respect of any contribution made by him in the financial year to any political party or electoral trust. (2) The deduction under sub-section (1) shall not exceed five per cent of,- (a) the average of the net profit determined in accordance with the provisions of section 349 and section 350 of the Companies Act during the three immediately preceeding financial years, in the case of a company; and (b) the 'gross total income from ordinary sources', in any other case. (3) For the purposes of this section, the word "contribution", with its grammatical variation, shall have the meaning assigned to it under section 293A of the Companies Act, 1956.