Political Parties and Electoral Trusts Get Updated Tax Framework Under Clause 12, Schedule VIII of Income Tax Bill

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....The Income Tax Bill, 2025 consolidates and modernizes tax provisions for political parties and electoral trusts through Clause 12 and Schedule VIII, replacing Sections 13A and 13B of Income Tax Act, 1961. The legislation maintains existing tax exemptions for income from house property, other sources, capital gains, and voluntary contributions while introducing stricter compliance requirements. Key modifications include a structured tabular format for provisions, retention of Rs. 2,000 cash donation limit, expanded electronic payment modes including electoral bonds, and mandatory 95% distribution requirement for electoral trusts. The bill strengthens documentation requirements, introduces explicit penalties for non-compliance, and enhances t.........