SEE Areca ction water Sa ’ Nabead fehon Qs: Legal Asp ns to Poli é Gee FAQs: Legal Aspects of Donations to Political Parties Coop, (i Fade nro 1. What rules govern political parties when it comes to accepting voluntary contribution from an individual or a ‘company? According to section 298 of Representation of People’s Act, every political party may accept any amount of contribution voluntarily offered to it by any person or company other than a Government company provided that ‘no political party shall be eligible to accept any contribution from any foreign source defined under clause (e) of section 2 of the Foreign Contribution (Regulation) Act, 1976, Furthermore, under Section 29-C of the RPA, it is made mandatory for the political parties to submit to the: Election Commission a list of donations they received of over Rs. 20,000 in Form 24-A and where such a political party fails to submit a report then such political party shall not be entitled to any tax relief under that Act. 2. Inwhat circumstance would the income from contribution not be included in total income of the year? ‘As per section 13A of the I.T Act, any income of a political party which is chargeable under the head "Income from house property" or "Income from other sources" or any income by way of voluntary contributions received by @ 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 enables the Assessing Officer to properly deduce its income there from; {b) in respect of each such voluntary contribution 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. 3. Whats the role of a Treasurer in a political party? Section 29C of Representation of People’s Act states that the treasurer of a political party or any other person authorized by the political party in this behalf shall, in each financial year, prepare a report in respect of the contribution in excess of twenty thousand rupees received by such political party from any person in that financial year. 4. What are the exemptions enjoyed by the donors who give voluntary contributions to political parties? Any contribution made by an individual to a political party (registered under Section 29A of the Representation of the People Act, 1951) is fully deductible under section 80GGC of the Income Tax Act and under section 80GGI ase the contribution is made by the companies.VorKavegy ATUALEA, ‘ care. k fed pote be Z 5 (rpres, a hs Qudif mp 7 (es Firencel on Pe Sook ~22078) 6) eed, li) — Bob 84 Candie And wc a a Pepavshe Af fer Pci Ore drticbiong fowleg Ho" fopead, fulsed & € lekong festa d WAIVE grim ve, 190m Piremie td 2017, Elcbnvel Souk — (7° gee ee fire }pem Rmioty, 1 Dt el. tp dalen Siac Gig ge 0 pd todabtton 42. poy fi ae ‘np hae @ st one se beck on ibs Wi bonth f pe ? chon % 20.00 © bho otc orhibKons huccipled -¥ “Feil © ted i te Tae Uredsl doe & pal, oabbolom 2a Ta 19) bd @ at infrmaion ob i rhiboion i el pel A pads. fa monty or in Ro apd be A bcdd 1p te Eledin. Pius./ company makes any contribution in contravention of h 5, What laws ‘govern the Companies which gve voluntary contribution to political partis? tence for less than three Section 2934 of Company's Act, 1956 states that no company which has been In ex poltical party oF fOr an¥ finan nancial years shall contribute any amount or amounts, directly of Indirect t0 3” political purpose to any person, , incorporated under the Companies Act, can “Ft dislose the amount in its profit and loss of directors through a resolution. If 2 this section, ‘the company shall be and every officer of the 1 three years and Besides, as per section 293A of the Company's Act, a company, donate up to 5% of its profit in a year, and the company is Boun accobit This exercise should be conducted with the approval of its board the provisions of ount sO contributed; punishable with fine which may extend to three times the am ‘company who is in default shall be punishable with imprisonment for a term which may extend t shall also be lable to fine, ; making the donations to political parties to Section 293 Ald) of the Companies Act requires the companies ments. The ministry of disclose the same with the details explicitly in their respective pro corporate affairs should cause a verification of this an fit & loss account state’ id take necessary action in case there is any infringement. 6 Who re not permitted under law to contribute to political parties? ad Section 2934 (3}(a) of Companies Act state that no Government Section 293A of Company's Act, 1956 a amounts directly or indirectly to any political party or for any political ‘company shall contribute any amount or purpose to any person. (Regulation) Act (FCRA), 1976, political parties are not permitted _ Under Sections 3 & 4 of Foreign Contributions panies controlled in Inga by foreign companies. to accept contributions from foreign companies or co! Fug more 1H Het le BSP@® STAd \98) 1 Inkvidwad doonabime . 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