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The Congress had at first “ignored” notices from the I-T department, Mr. Islam said.
Later appealed to the Commissioner of Income Tax, but its arguments had been rejected.
Subsequently, the party had approached the Income Tax Appellate Tribunal (ITAT).
Where the Congress did not get relief.
It then took the matter to the Delhi High Court on March 13, 2024.
Where too the Congress’s petition against recovery proceedings was dismissed.
Income Tax Exemptions for Political Parties
Even though political parties can not participate in commercial activities and cannot make profit.
Though they do have income from voluntary contributions, and such income are exempt u/s 13 A of Income tax act subject to furnishing of report to Election commission.
Income Tax Act section 13(A)
Section 13 deals with incomes that are not exempt from tax under certain circumstances.
Here's a simplified breakdown:
Income from property held under a trust for private religious purposes that doesn't benefit the public is taxable.
Income of a charitable trust created after the Act came into effect, if meant to benefit a specific religious community or caste, is taxable.
Section 13A deals with tax exemptions for political parties.
Income from house property, other sources, capital gains and voluntary contributions received by a political party are exempt from tax, subject to certain conditions.
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