Income Tax Act 2025: Section 137 for Tax Year 2025-26

An assessee can deduct contributions (non-cash) made to political parties or electoral trusts, except local authorities and government-funded entities.

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Deduction in respect of contributions given by any person to political parties

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

An assessee, (other than a local authority and an artificial juridical person wholly or partly funded by the Government), shall be allowed a deduction for the amount contributed by him, other than by way of cash, during a tax year to a political party registered under section 29A of the Representation of the People Act, 1951, or an electoral trust.


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