TAXATION LAWS (AMENDMENT) ACT, 1978

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.... Special provisions relating to income of political parties - New section 13A 3. The Amending Act has inserted a new section 13A in Chapter III which provides that the following categories of income derived by a political party will not be included in computing its total income : a. any income which is chargeable under the heads "Interest on securities", "Income from house property " and "Income from other sources", and b. any income by way of voluntary contributions. TAXATION LAWS (AMENDMENT) ACT, 1978 4. Exemption under the new provision will not be available unless the political party fulfils the following conditions, namely :— i. the political party keeps and maintains such books of account and other documents as would enabl....

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....hure, tract, pamphlet or the like published by a political party. It is relevant to note, that the term "political party" has not been defined for the purposes of this provision. As such, the term will bear its ordinary meaning and, therefore, wider connotation for the purposes of this provision. TAXATION LAWS (AMENDMENT) ACT, 1978 Consequential amendment in section 37(3A) 7. The Amending Act has also made certain consequential amendments in new sub-section (3A) directed to be inserted in section 37 by the Finance Act 1978. Section 37(3A) provides for the disallowance of a specified percentage of the "adjusted expenditure" incurred by an assessee on advertisement, publicity and sales promotion in India. Under the provision as enacted by ....