Income Tax Act 2025: Section 136 for Tax Year 2025-26

Indian companies can deduct non-cash contributions to registered political parties or electoral trusts under Section 136 of the Income Tax Act 2025.

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Deduction in respect of contributions given by companies to political parties

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

Section 136(1) of Income Tax Act 2025

(1) An assessee, being an Indian company, shall be allowed a deduction for the amount contributed by it, 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.

Section 136(2) of Income Tax Act 2025

(2) In this section, the word “contribute”, with its grammatical variations and cognate expressions shall have the same meaning as assigned to it in section 182 of the Companies Act, 2013.


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