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FM Arun Jaitley clarify status of political parties under IT Act
Finance Ministry clarifies status of Political parties under Income Tax Act
The Finance Ministry headed by Finance Minister Arun Jaitley issued a joint statement for the clarification on status of political parties under Income Tax Act, 1961.
Finance Ministry clarifies that exemption from Income Tax will be provided to only registered political parties subject to condition maintained in Section 13 A if Income Tax Act.
Political Parties to keep record of donations recieved more than 20,000
The registered political parties must maintain book of accounts and other documents to enable the assessing officer to reduce its income therefrom.
Arun Jaitley also states that the political parties need to submit their reports to the Election Commission regarding donations received within the time frame prescribed.
The statement stated that in respect of voluntary contribution in excess of Rs.20,000 political party has to maintain records of such donations.
