Only registered political parties exempt from IT
Q. Exemption from income tax is only given to registered political parties subject to?- Published on 19 Dec 16a. Maintenance of books
b. Use of assessing officer to deduce income
c. Both of the above
d. Neither of the above
ANSWER: Both of the above
The Union Finance Ministry on 17th Dec clarified that there are provisions in the Income Tax Act to scrutinise the accounts of political parties.
He said news that parties registered with Election Commission cannot be scrutinised with regard to deposit of demonetised currency notes, was incorrect.
Exemption from Income Tax is given to only registered political parties subject to conditions like
maintenance of books and other documents to enable the assessing officer to deduce the their income.
Political parties have to maintain record of voluntary contributions made by persons in excess of Rs 20,000 including the names and addresses of the donors.
The political parties have to submit a report to Election Commission about donations received within the prescribed timeframe.
The accounts of each such political party is to be audited by a chartered accountant, the ministry said.
