CBDT Clarification on Fake News Related to Exemption to Political Celebrations. CBDT Explanation of Status of Political Parties under Earnings Tax Act,1961 Reports on Advantage to political parties are false & misleading. Inspect more information about this news from listed below …
Government of India
Ministry of Financing
Department of Income
Central Board of Direct Taxes
New Delhi, 17 th December 2016.
Sub: Information of Status of Political Parties under Earnings Tax Act, 1961
There have been some paper reports which appear to incorrectly suggest that there can not be any analysis of Income-tax returns of political celebrations registered with the Election Commission in the context of deposits of old currency notes. This inference appears to have actually been drawn since of the truth that the income of the political parties is exempt from Income -tax under Section 13 A.
In this context, the following information require to be remembered:
- ( i) The exemption from Income-tax is provided to just authorized political celebrations subject to specific conditions, which are pointed out in Area 13 A, which includes keeping and preserving books of accounts and other documents as would make it possible for the Assessing Officer to deduce its earnings therefrom;-LRB-
- ( ii) In respect of each voluntary contribution in excess of Rs.20000, the political celebration will have to preserve a record of such contributions together with the name and address of such individual who has actually made such contribution;-LRB-
- ( iii) The accounts of each such political celebration is to be examined by a Chartered Accountant; and
- ( iv) The political celebration needs to submit a report to the Election Commission about the contributions got within a timeframe prescribed.
There are enough provisions in the Income Tact to scrutinise the accounts of the political celebrations and these political parties are also based on other provisions of Earnings -tax including the filing of return.
( Meenakshi J. Goswami)
Commissioner of Income Tax
( Media and Technical Policy)
Official Spokesperson, CBDT.
Tweets from Dr Hasmukh Adhia- Revenue Secretary, Ministry of Finance, Federal Government of Indiaon the above issue-