TaxTMI 
TaxTMI 
Meaning, Eligibility, Criteria for Approval, Renewal, Withdrawal of Electoral Trust
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....cal parties. 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. Eligibility of Electoral Trust * A company registered for the purposes of section 25 of the Companies Act, 1956 satisfying all of the following conditions shall be eligible to make an application for approval as an electoral trust, namely:- * (a) the company is registered on or after the 1st day of April, 2012 for the purposes of section 25 of the Companies Act, 1956 * (b) the name of the company registered for the purposes of section 25 of the Companies Act, 1956 shall include the phrase "electoral trust"; * (c) the sol....
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....which, on an application made in this behalf, may be extended. However, the total period for removal of defect shall not exceed 30 days; * (e) if the applicant fails to remove the defect within the period so allowed, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, shall send his recommendation to the Member (Income-tax), Central Board of Direct Taxes for treating the application as invalid; * (f) the Central Board of Direct Taxes, if satisfied, may pass an order treating the application as invalid; * (g) if the application form is complete in all respects, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, may make such inquiry as he may consider necessary regarding the ....
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....c) by the Commissioner of Income-tax or the Director of Income-tax, as the case may be, to the date the applicant removes such defect; * (n) a copy of the order invalidating or rejecting the application or withdrawing the approval shall be sent to the applicant, the Assessing Officer and the Commissioner of Income-tax or the Director of Income-tax, as the case may be; * (o) the approval shall be valid for the assessment year relevant to the financial year in which such application has been made and for a further period, not exceeding three assessment years, as may be specified in such approval. * Documents attached with application of registration Electoral Trust * The application in FORM A shall be accompanied by the following docu....
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.... any person referred to in rule 17CA(10); * (c) it has made adequate arrangement for recording the receipts from the contributors in accordance with rule 17CA; and * (d) the stipulations contained in sub-rules (2) to (15) of rule 17CA of the Rules for the functioning of an electoral trust are specifically included in the articles of association of the company registered for the purposes of section 25 of the Companies Act, 1956. Renewal of approval * (1) The approval shall be valid for the assessment year relevant to the financial year in which such application has been made and for a further period, not exceeding three assessment years, as may be specified in the approval. * (2) The electoral trust may apply for renewal of approva....