TaxTMI 
TaxTMI 
ELECTORAL TRUSTS SCHEME, 2013
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....e. (3) The scheme shall apply for the approval of any electoral trust under clause (22AAA) of section 2 of the Act. 2. Objectives of the Scheme - To lay down a procedure for grant of approval to an electoral trust which will receive voluntary contributions and distribute the same to the political parties. 3. Definitions - In this Scheme unless the context otherwise requires,- (a) "Act" means the Income-tax Act, 1961 (43 of 1961); (b) "Rules" means the Income-tax Rules, 1962; (c) "Scheme" means the ^1[Electoral Trusts Scheme, 2013]; and (d) the words and expressions used herein but not defined and defined in the Act shall have the same me....
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.... a copy of the application to the Member (Income-tax), Central Board of Direct Taxes accompanied by the acknowledgement receipt evidencing submission of application form in duplicate to the Commissioner of Income-tax or Director of Income-tax, as the case may be, having jurisdiction over the case ; (c) if any defect is noticed in FORM A or any document referred to therein is not attached with it, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, shall intimate the defect to the applicant within thirty days from the date of receipt of the application form in his office; (d) the applicant shall remove the defect within a period of fifteen days from the date of such intimation or wi....
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....j) the Central Board of Direct Taxes may also impose any conditions, subject to which the approval shall be valid; (k) no order treating the application as invalid or rejecting the application or withdrawing the approval shall be passed by the Central Board of Direct Taxes without giving the applicant an opportunity of being heard and without recording the reasons for the same in writing; (l) the order of approval or rejection shall be passed by the Central Board of Direct Taxes within six months from the end of the month in which the application form was received from the applicant in the office of Member (Income-tax), Central Board of Direct Taxes; (m) the period of limitation of six mont....
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....an affidavit stating that the receipts shall be distributed only to the political parties registered under section 29A of the Representation of the People Act, 1951 (43 of 1951); and (g) copy of accounts of the applicant for the last one, two or three years, as may be applicable. (3) Any change in the shareholders, subsequent to the approval granted under the Scheme, shall be intimated to the Board within thirty days of the change. 6. Criteria for approval - An electoral trust shall be considered for approval if it fulfils all of the following conditions, namely: - (a) the company registered for the purposes of section 25 of the Companies Act, 1956 (1 of 1956 ), which satisfies the con....
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....t is satisfied that the electoral trust has ceased its activities or its activities are not genuine or are not carried out in accordance with all or any of the conditions laid down under this Scheme or the provisions of rule 17CA of the Rules, or any other condition imposed in the approval granted. (2) In order to ascertain whether an electoral trust, after its approval, is functioning in accordance with the provisions of rule 17CA of the Rules, the Central Board of Direct Taxes may call for information or documents as it may deem fit from the electoral trust or may get an enquiry conducted in this regard by an income-tax authority or any other agency. (3) If the Commissioner of Income-tax or the Director of Income-tax is satisfied th....
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.... Permanent Account Number : ____________ (3) Name and Address of the electoral trust in full [In BLOCK letters] : ____________ (4) Date of Registration as a Company for the purposes of Section 25 of the Companies Act, 1956 : ____________ (5) Name(s), address(es) and Permanent Account Number of members (including members of its Executive Committee, Governing Committee or Board of Directors) : ____________ (6) I also enclose the following documents : (a) An attested copy of the certificate evidencing registration of the company for the purposes of section 25 of the Companies Act, 1956; (b) certified copy of the articles of assoc....