If a Political Party if formed under Representation of People's Act registed u/s 29A and accepts donation from a salaried employee, the employee will get deduction u/s 80 GGC. If the political party then forwards the donation received from the employee to his wife/parents or relatives as a loan. The employee uses the loan for personal purpose or for any purpose.
The political party never recovers the loan and after 5-10 years writes off the loan as bad debt.
Can ITO take any action against anyone?
CAclubindia
