Donation receipt rules limit cash donations to non-cash modes and allow electoral bonds without reporting, affecting party tax exemption. Eligibility for tax exemption of political parties is conditioned on receipt of donations above two thousand rupees only by account payee cheque, account payee bank draft, electronic clearing system through a bank account, or through electoral bond; electoral bond contributions are excluded from the prior reporting requirement. Political parties must also furnish their return of income for the previous year under the specified provision on or before the due date. The amendment defines 'electoral bond' and is effective from 1 April 2018.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Donation receipt rules limit cash donations to non-cash modes and allow electoral bonds without reporting, affecting party tax exemption.
Eligibility for tax exemption of political parties is conditioned on receipt of donations above two thousand rupees only by account payee cheque, account payee bank draft, electronic clearing system through a bank account, or through electoral bond; electoral bond contributions are excluded from the prior reporting requirement. Political parties must also furnish their return of income for the previous year under the specified provision on or before the due date. The amendment defines "electoral bond" and is effective from 1 April 2018.
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