Section 13A - Special provision relating to incomes of political parties - Income-tax Act, 1961

1 [Special provision relating to incomes of political parties. 13A. Any 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 8 [ other than contribution by way of electoral bond ] in excess of 5 [ 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; 9 [***] ( c ) the accounts of such political party are audited by an accountant as defined in the Explanation below sub-section (2) of section 288 10 [and] : 11 [(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 13 [ bank account or through such other electronic mode as may be prescribed ] 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)] 6 [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 .] 12 [ 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. ] 7 [ 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. Inserted by the Taxation Laws (Amendment) Act, 1978, w.e.f. 1-4-1979. 2. Interest on securities , omitted by the Finance Act, 1988, w.e.f. 1-4-1989. 3. Inserted by the Finance Act, 2003, w.r.e.f. 1-4-1979. 4. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 5. Substituted for ten by the Election and Other Related Laws (Amendment) Act, 2003, w.e.f. 11-9-2003. 6. Inserted by the Election and Other Related Laws (Amendment) Act, 2003, w.e.f. 11-9-2003. 7. Substituted, by the Election and Other Related Laws (Amendment) Act, 2003, w.e.f. 11-9-2003. Prior to its substitution, Explanation read as under : Explanation.- For the purposes of this section, political party means an association or body of indi vidual citizens of India registered with the Election Commission of India as a political party under paragraph 3 of the Election Symbols (Reservation and Allotment) Order, 1968, and includes a political party deemed to be registered with that Commission under the proviso to sub-paragraph (2) of that paragraph. 8. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018 9. Omitted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018 before it was read as, and 10. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018 11. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018 12. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2018 13. Substituted vide FINANCE (NO. 2) ACT, 2019 w.e.f. 01-04-2020 before it was read as bank account