Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Act Rules Income Tax
    Comparison of Section 143 "Special provisions in respect of certain undertakings in North-Eastern St...
    Act Rules Income Tax
    Comparison of Section 135 "Deduction in respect of certain donations for scientific research or rura...
    Act Rules Income Tax
    Comparison of Section 124 "Deduction in respect of employer and assessee contribution to pension sch...
    Act Rules Income Tax
    Comparison of Section 119 "Carry forward and set off of losses not permissible in certain cases." be...
    Act Rules Income Tax
    Comparison of Section 118 "Carry forward and set off of losses and unabsorbed depreciation in busine...
    Act Rules Income Tax
    Comparison of Section 115 "Set off and carry forward of losses from specified activity." between the...
    Act Rules Income Tax
    Comparison of Section 114 "Set off and carry forward of losses computed in respect of specified busi...
    Act Rules Income Tax
    Comparison of Section 113 "Set off and carry forward of losses computed in respect of speculation" b...
    Act Rules Income Tax
    Comparison of Section 112 "Carry forward and set off of business loss." between the Income-Tax Act, ...
    Act Rules Income Tax
    Comparison of Section 111 "Carry forward and set off of loss from Capital gains." between the Income...
    Act Rules Income Tax
    Comparison of Section 110 "Carry forward and set off of loss from house property." between the Incom...
    Act Rules Income Tax
    Comparison of Section 108 "Set off of losses under same head of income." between the Income-Tax Act,...
    Act Rules Income Tax
    Comparison of Section 106 "Amount borrowed or repaid through negotiable instrument, hundi, etc." bet...
    Act Rules Income Tax
    Comparison of Section 105 "Unexplained expenditure." between the Income-Tax Act, 2025 (as passed) an...
    Act Rules Income Tax
    Comparison of Section 104 "Unexplained asset." between the Income-Tax Act, 2025 (as passed) and the ...
    Act Rules Income Tax
    Comparison of Section 103 "Unexplained investments." between the Income-Tax Act, 2025 (as passed) an...
    Act Rules Income Tax
    Comparison of Section 102 "Unexplained credits." between the Income-Tax Act, 2025 (as passed) and th...
    Act Rules Income Tax
    Comparison of Section 99 "Income of individual to include income of spouse, minor child, etc." betwe...
    Act Rules Income Tax
    Comparison of Section 93 "Deduction" between the Income-Tax Act, 2025 (as passed) and the Income-Tax...
    Act Rules Income Tax
    Comparison of Section 92 "Income from other sources." between the Income-Tax Act, 2025 (as passed) a...
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Act Rules Income Tax
Show AI Summary
Special tax deduction for North-Eastern undertakings grants full profit exemption for a fixed consecutive period.
A 100% deduction of profits and gains is available to undertakings in specified North-Eastern States for ten consecutive tax years starting from an "initial tax year", contingent on commencement or substantial expansion within a discrete qualifying window, formation and newness-of-plant conditions, exclusions for specified goods and activities, a defined test for "substantial expansion", and exclusivity preventing concurrent Chapter deductions; cross-referenced provisions determine treatment of re-established entities and aggregate duration limits.
Act Rules Income Tax
Show AI Summary
Deduction for research donations: tax relief for approved gifts subject to verification and specified exclusions.
Deduction is allowed for donations to approved research associations or educational institutions for scientific or social science/statistical research, contingent on recipient approval and information furnished by the payee to the prescribed income tax authority and subject to the Board's risk based verification; deductions are excluded where the donor has business/profession income or where contributions in cash exceed the prescribed threshold, and deduction is not to be denied solely because recipient approval is later withdrawn.
Act Rules Income Tax
Show AI Summary
Pension contribution deduction: employer and individual pension contributions receive tax relief, with caps and deeming rules affecting receipt.
Section 124 allows deductions for employer contributions to Central Government notified pension schemes subject to employer type percentage ceilings and for individual deposits into such schemes subject to an overall statutory cap; parent or guardian deposits for minors are aggregated with the individual cap. The provision defines salary for this purpose to include dearness allowance where employment terms so provide, disallows duplicate deduction where relief was claimed under the related provision, and deems amounts received on closure, opt out, or as annuity taxable in the year of receipt, with limited exceptions for nominee/parent/guardian receipts on death.
Act Rules Income Tax
Show AI Summary
Loss carry-forward restrictions: beneficial ownership and voting-power continuity determine entitlement to set off historic losses.
The section restricts carry forward and set off of losses on change in firm constitution, succession other than by inheritance, and change in shareholding of non-public companies unless continuity of beneficial ownership of shares carrying not less than fifty-one percent of voting power is maintained or specified exceptions (death, gift to relative, certain amalgamations/demergers, insolvency resolution plans with opportunity to be heard, tribunal-approved restructuring, relocation, and a start-up carve-out) apply.
Act Rules Income Tax
Show AI Summary
Carry-forward of predecessor losses: successor bank may set off losses as if reorganisation had not occurred, subject to continuity conditions.
Section 118 permits successor or resulting co operative banks to carry forward and set off predecessor accumulated losses and unabsorbed depreciation on amalgamation or demerger "as if the business reorganisation had not taken place," subject to the Act's set-off and depreciation rules. Demergers transfer directly attributable losses to the resulting undertaking and require pro rata apportionment of non direct losses by asset distribution. Qualification depends on continuity of banking activity and specified fixed asset holding thresholds, deemed tax year splitting, prescribed/notified conditions, and denial of set offs as taxable income upon non compliance.
Act Rules Income Tax
Show AI Summary
Ring-fencing of race-horse losses restricts set-off to stake-money income and allows limited carry forward period.
Losses from owning and maintaining race horses are ring-fenced and may be set off only against income from the same specified activity (stake money). Unabsorbed losses may be carried forward for set-off solely against future stake-money income in years when the assessee carries on the specified activity, subject to a limited carry-forward period after which unabsorbed amounts expire. Definitions narrow the scope of eligible income and losses.
Act Rules Income Tax
Show AI Summary
Set-off restriction for specified business losses limits use to profits of other specified business activities only.
Losses computed in respect of a specified business carried on by the assessee in a tax year may be set off only against profits and gains of other specified business activities for that year; any portion not so set off is an unabsorbed loss that may be carried forward and set off only against profits and gains of specified businesses in subsequent years.
Act Rules Income Tax
Show AI Summary
Speculation loss ring fencing: losses only offset against speculation profits with limited carry forward and priority in set off.
Losses from speculation business may be set off only against speculation business profits; any unabsorbed speculation business loss is carried forward and set off only against future speculation business profits, subject to a statutory temporal limitation and applied before certain other carried forward allowances. A deeming rule treats companies buying and selling shares of other companies as carrying on speculation business to that extent, subject to carve outs where specified income heads or principal business activities prevail.
Act Rules Income Tax
Show AI Summary
Carry forward of unabsorbed business loss limited to set off only against business profits, with a temporal carry forward limit.
Unabsorbed business loss (loss under Profits and gains of business or profession excluding speculation loss not absorbed under inter head set off) shall be carried forward and may be set off only against business or profession profits in subsequent years; any amount not so set off is carried forward iteratively, subject to a limit of not more than eight succeeding tax years, and such unabsorbed loss is to be given effect before allowing set off of specified carried forward allowances.
Act Rules Income Tax
Show AI Summary
Carry forward of capital losses: limited temporal carry forward with distinct set off rules for long term and short term losses.
A statutory regime prescribes distinct set off rules for losses under the head Capital gains: short term capital losses may be set off against gains from any other capital asset, long term capital losses only against gains from other long term assets, and any residual loss after intra year set off qualifies for carry forward but only for a limited number of succeeding tax years; the Bill defined this residual as an unabsorbed capital loss, whereas the enacted provision omits that label but retains equivalent practical effect.
Act Rules Income Tax
Show AI Summary
Carry-forward restriction of house property losses confines set-off to future house property income with a time-limited ceiling.
Residual losses computed under Income from house property that are not wholly absorbed by intra-year set-off qualify as unabsorbed loss from house property and may be carried forward, to be set off only against future house property income in subsequent years until the loss is absorbed or the statutory temporal limit expires; the clause defines the qualifying unabsorbed loss by reference to prior application of intra-year set-off rules.
Act Rules Income Tax
Show AI Summary
Capital gains set-off rules restrict long-term losses to long-term gains while short-term losses offset any capital gains.
Section 108 separates general intra-head set-off (excluding capital gains) from specific capital gains rules: long-term capital losses are only set off against other long-term capital gains in the same year, while short-term capital losses may be set off against gains from any capital asset, with classification and computation governed by the capital gains framework.
Act Rules Income Tax
Show AI Summary
Deeming rule for non-account-payee instruments treats amounts (including interest) as taxable income in the year of transaction.
Amounts (including interest) borrowed or repaid through a negotiable instrument, a hundi, or any mode specified by the Board shall be deemed to be the income of the borrower or repayer for the tax year of the transaction; transactions effected by an account payee cheque are excluded, and sub-section (2) prevents re-assessment of the same amount under that sub-section on repayment.
Act Rules Income Tax
Show AI Summary
Unexplained expenditure deemed income, disallowing deduction when source is not satisfactorily explained by assessing officer.
Section 105 deems expenditure to be income when the assessee offers no explanation of its source or offers an explanation the Assessing Officer deems unsatisfactory; the deemed amount cannot be claimed as a deduction under the Act, the deeming may apply to part of an expenditure, and the provision contains no definitions, procedural safeguards, evidentiary standards, or appeal mechanisms.
Act Rules Income Tax
Show AI Summary
Unexplained asset: acquisition expenditure governs deeming as income when taxpayers give no satisfactory explanation on source.
An unexplained asset found to belong to an assessee, or where the asset measure exceeds recorded books, may be deemed income for the year if the assessee offers no explanation or an explanation unsatisfactory to the Assessing Officer; the enacted text measures the asset by the amount expended in acquiring such asset and expressly includes virtual digital assets, while leaving valuation mechanics, evidential burdens, and procedural standards unspecified.
Act Rules Income Tax
Show AI Summary
Unexplained investments deemed income when not recorded or inadequately explained to the assessing officer.
Section 103 deems the value of investments to be income in the tax year where an investment is not recorded in the assessee's books of account, if any, or where the Assessing Officer finds the amount exceeds recorded entries, and the assessee either offers no explanation or an explanation that is not satisfactory in the opinion of the Assessing Officer.
Act Rules Income Tax
Show AI Summary
Unexplained credits: credited sums may be taxed if explanations are absent or unsatisfactory, shifting evidentiary burden to taxpayers and counterparties.
Section 102 allows sums found credited in an assessee's books to be charged as income where no explanation is given or the explanation is not satisfactory to the Assessing Officer. It places special deeming requirements on loans/borrowings and certain private company receipts, requiring the person in whose name the credit stands to provide a satisfactory explanation to the Assessing Officer, while excluding specified venture capital funds from those counterparty requirements.
Act Rules Income Tax
Show AI Summary
Clubbing of family income risks expanding under revised spouse professional-income wording, increasing compliance and valuation complexities.
Section 99 requires inclusion in an individual's total income of amounts arising to a spouse, son's wife, minor child, or where property is converted into HUF property; it prescribes exclusions for certain minor child earnings, a proportionate apportionment formula for assets invested in business or partnership, deems income to include loss, preserves a temporal carve out for conversions on or before 31 December 1969, and identifies documentation and valuation consequences where Bill wording diverges on spouse professional income carve outs, third party benefit attribution and the denominator reference date for apportionment.
Act Rules Income Tax
Show AI Summary
Deductions under Section 93 clarify allowable expenses and caps for income from other sources, with key exclusions.
Section 93 prescribes allowable deductions in computing income from other sources, including reasonable commissions for realising dividends and interest, cross-referenced expense allowances applied "so far as may be," capped deductions for family pension depending on tax computation method, revenue expenditures wholly and exclusively laid out, a single fixed-percentage deduction for a specified income class with no other deductions permitted, and sub-section rules denying deductions for a defined dividend class while limiting interest deductions for certain dividend or unit incomes.
Act Rules Income Tax
Show AI Summary
Income from other sources determines taxability of miscellaneous receipts and prescribes valuation, thresholds, and exemptions.
Section 92 creates a residuary head, Income from other sources, taxing miscellaneous receipts not chargeable under other heads and listing illustrative categories (dividends, winnings, specified insurance proceeds, interest, hire income, forfeited advances, compensation interest, termination payments, business trust distributions). It prescribes valuation and computation methods, monetary thresholds for gratuitous receipts with enumerated exceptions (relatives, marriage, inheritance, specified non profits, non transfer transactions), and cross references to other statutory definitions and procedures affecting payment modes and valuation challenges.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Comparison of SCHEDULE VIII "INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

18 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

SCHEDULE VIII - INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS

Income-tax Act, 2025

At a Glance

SCHEDULE VIII (Bill, Old Version) lists categories of income that are excluded from the total income of political parties and electoral trusts for income-tax computation. It matters to registered political parties and electoral trusts, and to donors and tax authorities concerned with compliance and reporting. The document does not state an effective date. Not stated in the document.

Background & Scope

Statutory hook: "See section 12" (SCHEDULE VIII). The Schedule sets out a Table with three columns: (B) Income not to be included in total income, (C) Eligible persons, and (D) Conditions. The Schedule covers two entries: (1) certain incomes (house property, other sources, capital gains, and voluntary contributions) for political parties registered u/s 29(a) of the Representation of the People Act, 1951; and (2) voluntary contributions for electoral trusts. The Schedule contains a Note defining "electoral bond" by reference to the Explanation to section 31(3) of the Reserve Bank of India Act, 1934. The Schedule provides enumerated conditions attached to each exclusion. No other definitions or extended explanations are provided. Not stated in the document: legislative intent beyond the text; effective date; interaction with other income-tax provisions beyond the internal cross-references provided.

Statutory Provision Mode

Text & Scope

The Schedule exempts specified categories of income from inclusion in total income for eligible political parties and electoral trusts. For political parties (registered u/s 29(a) of the Representation of the People Act, 1951), the exempt incomes include: income chargeable under "Income from house property," "Income from other sources," "Capital gains," and "any income by way of voluntary contributions received from any person." For electoral trusts, the exempt income is "any voluntary contributions received."

Coverage is limited to "eligible person" as defined in column C of the Table; eligibility for a political party is tied to registration under the cited section; for an electoral trust, the table simply identifies "An electoral trust." The Note supplies a cross-statutory definition relevant to electoral bonds.

Interpretation

The Schedule conditions the exemption on compliance requirements contained in column D. The text indicates a legislative intent to condition tax benefits on maintenance of records, audit, restricted modes of receipt for small donations, reporting obligations under the Representation of the People Act, and, for electoral trusts, distribution and regulatory compliance. The use of cross-references to specific sections of the Representation of the People Act suggests a statutory integration of electoral reporting and income-tax treatment. The Schedule uses prescriptive compliance criteria rather than blanket immunity, signalling a policy to incentivise transparency and traceability of political funding.

Exceptions/Provisos

Clause (d) caps small-donation anonymity: "no donation exceeding Rs. 2,000 is received ... otherwise than by an account payee cheque ... or through electoral bond." Thus donations <= Rs. 2,000 may be received in other modes; donations > Rs. 2,000 must be through specified financial instruments. Clause (b) requires a record of voluntary contributions other than electoral bonds in excess of Rs. 20,000, including the name and address of the contributor. For electoral trusts, clause (a) mandates distribution of 95% of aggregate donations in the tax year (plus any earlier surplus) to political parties during that tax year. Clause (b) requires that the electoral trust function according to Central Government rules.

Illustrations

  • Example 1: A registered political party receives Rs. 50,000 as a voluntary contribution by cheque and has maintained books, audited accounts, kept contributor records where required, submitted the report u/s 29C(3), and filed the tax return as required. The contribution would be excluded from total income under the Schedule subject to compliance. (Derived from clauses (a)-(f).)
  • Example 2: An electoral trust receives Rs. 1 crore in donations in the tax year and distributes Rs. 95 lakh to registered political parties during that year and functions per Central Government rules. The Rs. 1 crore of voluntary contributions is not included in total income under the Schedule, assuming compliance. (Derived from electoral trust clauses.)
  • Example 3: A political party receives a cash donation of Rs. 5,000 in hand (i.e., not by cheque or electronic mode). Under clause (d) such a receipt would contravene the prohibition (since exceeding Rs. 2,000 received otherwise than by specified modes), potentially jeopardising the exemption for that donation or the party's entitlement under the Schedule. (Derived from clause (d).)

Interplay

The Schedule cross-references provisions of the Representation of the People Act (section 29(a); section 29C(3)) and the Reserve Bank of India Act (Explanation to sub-section (3) of section 31). It also requires compliance with section 263(1)(a)(iii) for return furnishing. No other Rules/Notifications/Circulars are cited in the Bill text beyond the general reference that electoral trusts must function as per Central Government rules. The Schedule thus relies on external statutory and regulatory instruments for definitional and compliance content. Specific interaction details (e.g., precedence where Schedule conditions conflict with other tax provisions) are Not stated in the document.

Differences Between the Two Versions and Practical Impact

  • Reference to Representation of the People Act-Section numbering: The Bill (Old Version) refers to a political party "registered u/s 29(a) of the Representation of the People Act, 1951," whereas the Act text (Income-tax Act, 2025) refers to a political party "registered u/s 29A of the Representation of the People Act, 1951."
    • Practical impact: The Act version corrects or alters the cross-reference. If the Bill reference (29(a)) was erroneous, the Act version aligns the income-exemption to the correct statutory registration provision, avoiding uncertainty about eligible entities. This is a drafting/clarificatory change; no substantive shift to eligibility is apparent from the texts themselves.
  • Prescription language regarding electronic mode: The Bill uses the phrase "as prescribed" in clause (d) (Bill: "as prescribed"), while the Act uses "as may be prescribed" (Act: "as may be prescribed").
    • Practical impact: Minimal substantive difference; "as may be prescribed" is the more conventional enabling language for delegated legislation, clarifying that the electronic modes will be specified by rule-making authority. It likely strengthens the permissive legislative footing for future rules.
  • Return filing cross-references and due dates: The Bill requires the political party to furnish a return "as per the provisions of section 263(1)(a)(iii) on or before the due date under that section." The Act requires furnishing "as per the provisions of section 263(1)(a)(iii) and 263(2) on or before the due date referred to in section 263(1)(c)."
    • Practical impact: The Act adds an additional cross-reference to section 263(2) and specifies the due date provision more precisely (263(1)(c)). This tightens the statutory compliance framework by pointing to an additional subsection and a precise due-date clause, potentially expanding or clarifying filing obligations and consequences for non-compliance.

Practical Implications

  • Compliance and risk areas: Political parties must maintain books of account and documentary records sufficient for an Assessing Officer to determine income; failure may lead to denial of exemption. Specific risks include non-receipt through prescribed modes for donations over Rs. 2,000, failure to record contributor details for contributions over Rs. 20,000 (other than electoral bonds), and failure to secure an audit. Electoral trusts must ensure timely distribution of 95% of receipts to preserve tax treatment; failure to distribute may endanger exemption. These obligations create audit and reporting exposure for both entities.
  • Record-keeping/evidence: The Schedule explicitly requires maintenance of books and records, contributor name and address for relevant donations, and audit reports. Entities should retain bank evidence for account payee cheques/ drafts/electronic transfers and maintain documentation of electoral bond receipts. The Schedule itself prescribes these documentary requirements; procedural detail (forms, formats, retention period) is Not stated in the document.

Key Takeaways

  • The Schedule grants targeted income exclusions for registered political parties and electoral trusts, conditioned on specified transparency and procedural requirements.
  • Eligibility for exemption for political parties is tied to registration under a specified provision of the Representation of the People Act; accuracy of cross-references is material to eligibility determinations.
  • Donations above Rs. 2,000 must be received by specified financial instruments; donations above Rs. 20,000 (except electoral bonds) require recording of donor identity and address.
  • Electoral trusts must distribute 95% of receipts in the tax year to preserve the exclusion; they must also function under Central Government rules.
  • Audit of accounts and filing of returns (cross-referenced tax provisions) are preconditions for enjoying the benefits; failure to comply can jeopardise tax exemptions.
  • The Schedule relies on cross-statutory definitions (RBI Act) and electoral reporting (RPA provisions); operational detail is delegated to rules and external provisions.
  • Where the Bill's text is silent (effective date; specific procedural formats; penalties for non-compliance within the Schedule), the document states "Not stated in the document."

Full Text:

SCHEDULE VIII - INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS

Topics

Acts Income Tax