Clarification regarding applicability of Chapter IVD in the case of political parties.

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..... ions 44AB and 271B of the Income tax Act, in the case of political parties. 2. The Board consulted the Ministry of Law and Justice and have been advised that: i) the idea of profession arises from a profit motive. In a political party, as in any a charitable institution, there is no private profit motive nor a possibility of distribution of income among the members. ii) Having kept such inco .....

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..... wever, the political parties will have to fulfil the requirement of maintaining the accounts and getting them audited by an accountant, as provided in section 13A of the Act to claim the benefit of exemption. 5. This may kindly be brought to the knowledge of all officers under your region. F.No. 225/128/99/ITA.II (Pt.) (Kamlesh C. Varshney) Under Secretary to the Govt. of India - .....

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