if any income found of political party as black money. what is the tax treatment of political party
1 Replies
Amir
(Learner)
(4016 Points)
Replied 11 April 2010
Dear Pradeep,
Well this one is good..............!
U asked this question as if this thing is to be proved ..............:)
I am trying to answer in a different way -
Bhai there is NO provision under Income Tax which exempts the Income or Black Money of POLITICIANS - But still have u ever heard/seen any Politician's Name amongst the top tax payers..... So when Nothing is happening against them for which laws are same as usual assessee the we should not expect any wonders with regards to Political Parties since there is a specific section for them...[Unfortunate but hard fact for our country]
For POLITICAL PARTIES - We have sec 13A which exempts following incomes -
1) House Property
2) Capital Gains
3) Other sources
Political Parties can't have Income from Salary or PGBP......:)
On a serious note I would say that where prescribed details in respect of voluntary contributions are not maintained then exemption u/s 13A shall not be available & Political Parties are supposed to pay tax on them.(I have purposely used the words "supposed to" becos whether they will "actually pay" is something dificult to say.)
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