Section 13A — Political Parties

Function in the statutory architecture

Section 13A excludes from the total income of a political party registered under section 29A of the Representation of the People Act, 1951 its income chargeable under the heads “Income from house property”, “Income from other sources” or “Capital gains”, and any voluntary contributions received from any person.

The exclusion is conditional. The party must keep books of account and other documents that enable the Assessing Officer to deduce its income; keep a record, with name and address, of each voluntary contribution above Rs 20,000 (other than by electoral bond); have its accounts audited by an accountant as defined in s. 288(2); and receive no donation exceeding Rs 2,000 otherwise than by account payee cheque, account payee bank draft, electronic clearing system, another prescribed electronic mode, or electoral bond. It must also furnish its return under s. 139(4B) by the due date.

Operative consequences

• If the treasurer or other authorised person fails to submit the report under section 29C(3) of the Representation of the People Act, 1951 for a financial year, no exemption is available for that year.
• If the return is not furnished by the due date under s. 139(4B), the exemption is lost.
• Income from business or profession is not within the exclusion.

Status

The section is operative for AY 2026-27. The Finance Act, 2026 does not amend this section.

The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject, the 2025 Act provision is s. 12 read with Schedule VIII.