Section 136 — Company Political Contribution | ITA 2025

Section 136 — INDIAN COMPANY POLITICAL CONTRIBUTIONS (1961 s. 80GGB SUCCESSOR)

Section 136 is the substantive equivalent of 1961 s. 80GGB. Indian Company allowed deduction for contributions to (a) political party registered u/s 29A of Representation of the People Act, 1951; or (b) electoral trust. 100% deductible, NO QUANTUM LIMIT — but cash payments NOT permitted (must be by banking channel / electoral bond). Companies Act, 2013 imposes separate caps (e.g., 7.5% of average net profits over 3 preceding FYs).

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 — s. 136	INCOME-TAX ACT, 1961 — s. 80GGB
Indian-co contribution to political party / electoral trust	Same
Banking channel / non-cash mandatory	1961 s. 80GGB proviso
100% deductible no IT cap	Same

PLANNING NOTES

(i) Mandatory non-cash mode — cheque / online / electoral bond. Cash route fully disallowed. (ii) Electoral Bond scheme (post-2018, struck down by SC in Feb-2024) — verify current legal regime. (iii) Companies Act, 2013 s. 182 caps political contribution at 7.5% of avg net profits — separate ceiling. (iv) Document via board resolution + recipient's PAN.

CROSS-REFERENCES

Section 137 — Other-person political contributions.
Companies Act, 2013 — s. 182.
Representation of the People Act, 1951 — s. 29A.

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