Donation received by political party is considered as income or not?
If yes, then under which head?
As only PGBP income is taxable in hands of political party.
please clarify?
Replies (3)
Quick Summary
This discussion clarifies that donations received by a political party are indeed considered taxable income. Specifically, this income is taxed under the 'Income from other sources' head, not 'Profits and gains of business or profession'. The conversation also touches upon how grants received by a sole proprietorship registered as a trust might be treated as income from a political party.
Yes, donations received by a political party are considered as income and are taxable. However, the income from donations is taxed under the head "Income from other sources" and not under the head "Profits and gains of business or profession" (PGBP).