Amended and updated notes on section 13B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provisions relating to voluntary contributions received by electoral trust.
Chapter III (Sections 10 to 13B) of the Income Tax Act 1961 deals with the provisions related to incomes which do not form part of total income. Section 13B of IT Act 1961-2023 provides for special provisions relating to voluntary contributions received by electoral trust.
Recently, we have discussed in detail section 13A (special provision relating to incomes of political parties) of IT Act 1961. Today, we learn the provisions of section 13B of Income-tax Act 1961. The amended provision of section 13B is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 13B of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-13B: Special provisions relating to voluntary contributions received by electoral trust
Any voluntary contributions received by an electoral trust shall not be included in the total income of the previous year of such electoral trust, if—
(a) such electoral trust distributes to any political party, registered under section 29A of the Representation of the People Act, 1951 (43 of 1951), during the said previous year, ninety-five per cent of the aggregate donations received by it during the said previous year along with the surplus, if any, brought forward from any earlier previous year; and
(b) such electoral trust functions in accordance with the rules made by the Central Government.