In this context, the following clarifications need to be kept in mind:
(i) The exemption from Income-Tax is given to only registered political parties subject to certain conditions, which are mentioned in Section 13A, which includes keeping and maintaining books of accounts and other documents as would enable the Assessing Officer to deduce its income therefrom;
(ii) In respect of each voluntary contribution in excess of Rs. 20000, the political party will have to maintain a record of such contributions along with the name and address of such person who has made such contribution;
(iii) The accounts of each such political party is to be audited by a Chartered Accountant; and
(iv) The political party has to submit a report to the Election Commission about the donations received within a timeframe prescribed.
There are enough provisions in the Income Tax Act to scrutinise the accounts of the political parties and these political parties are also subject to other provisions of Income-Tax, including filing of return.