28 November 2012
Following incomes of Political Parties are exempt from tax -
Income from House Property Capital Gain Income from Other Sources Income by way of voluntary contributions received Provided that
The Political Party keeps and maintains books of account and other documents that would enable the AO to properly deduce its income therefrom. For each Voluntary Contribution > Rs20,000, a record and the name & address of the person who has made the contribution must be kept and maintained. Accounts are audited by a CA. The treasurer or any other person authorized by the political party in this behalf must submit a report under section 29C(3) of the REPRESENTATION OF THE PEOPLE ACT, 1951 for a financial year.
Therefore, a house registered under a registered political party is exempt from tax under income from House property.
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