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Special provision relating to incomes of political parties.

13A. Any income of a political party which is chargeable under the head "Income from house property" or "Income from other sources" or 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 Assessing Officer to properly deduce its income therefrom;

 (b)  in respect of each such voluntary contribution 1[other than contribution by way of electoral bond]  in excess of 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; 2[***]

 (c)  the accounts of such political party are audited by an accountant as defined in the Explanation below sub-section (2) of 3 section 288 [; and]

 4(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 7[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.’;

 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.

5Provided also [ that such political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) section 139  on or before the due date under that section ]

 6Explanation.-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).

 NOTE-

 1.Ins. by the Finance Act, 2017 (w.e.f. 1-4-2018)

 2.Word "and" omitted by the Finance Act, 2017 (w.e.f. 1-4-2018)

3.Ins. by the Finance Act, 2017 (w.e.f. 1-4-2018)

 4.Ins. by the Finance Act, 2017 (w.e.f. 1-4-2018).

 5.Ins. by the Finance Act, 2017 (w.e.f. 1-4-2018).

6.Sub. by the Finance Act, 2017 (w.e.f. 1-4-2018).

7.Substituted by the Finance Act,2019 (w.e.f 1-4-2020)

in clause (d),

words “bank account”

Following shall be substituted namely,

Words “bank account or through such other electronic mode as may be prescribed”