Rebate

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2011 What is the Rebate to Political Party.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

10 July 2011 No separate rebate. Only the expenses incurred by them is allowable.

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2011 then they dont have to pay Income Tax. How to file there Income Tax Return.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

20 July 2025 1. Rebate for Political Parties:
Political parties do not get any direct rebate or exemption from income tax on income.
Instead, they are exempt from paying tax on income from voluntary contributions or donations and other income, provided certain conditions under Section 13A of the Income Tax Act are met.
Also, the expenses incurred by the party on its activities (e.g., elections, propaganda) are allowable as deductions.
2. Income Tax Filing by Political Parties:
Political parties must file an Income Tax Return (ITR) every year, usually ITR-7 form.
Even if income is exempt, the return filing is mandatory to declare:
Voluntary contributions received,
Income from property held,
Other sources of income,
And the utilization of funds as per rules.
The return helps maintain transparency and enables claim of exemption.
3. Key Points:
Donations to political parties are eligible for deduction by the donor under Section 80GGC.
The political party’s income (from donations, property, etc.) is exempt, but must be properly declared.
If conditions are not met (e.g., proper use of funds), exemption can be denied.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok