A Comprehensive Analysis of Tax Provisions for Political Parties and Electoral Trusts: From Income Tax Act, 1961 to Income Tax Bill, 2025

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..... x Bill, 2025 1. Introduction The Income Tax Bill, 2025 introduces significant changes to the taxation framework for political parties and electoral trusts through Clause 12 read with Schedule VIII, which essentially consolidates and modifies the existing provisions u/s 13A and 13B of the Income Tax Act, 1961. This analysis examines the evolution and implications of these provision 2. Objective .....

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..... o be included * Column C: Eligible persons * Column D: Conditions 4. Key Changes 4.1 For Political Parties Income Categories Covered: * Existing Act: Specifically mentions income from house property, other sources, capital gains, and voluntary contributions * New Bill: Maintains the same categories but presents them in a more structured manner Key Conditions: 1. Documentation Requirem .....

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..... ines * Explicit linking with Section 29C (3) of Representation of People Act, 1951 * Enhanced audit requirements 5.2 Penalty Provisions * New provisions for taxation of exempt income if conditions are not met * Clear specification of consequences of non-compliance 6. Practical Implications 6.1 For Political Parties * Enhanced documentation requirements * Stricter compliance timeline .....

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