A street selling Congress goods outside the party headquarters deserted on the day of counting of votes for the assembly elections on March 10, 2022.
Political parties will now have to provide details of voluntary contributions received under various categories in their Income Tax Returns (ITR).
Under the latest ITR-7 notified by the Central Board of Direct Taxes, a new field has been added to the form seeking whether a political party is registered with a registration number under Section 29A of the Representation of the People Act, 1951. Registration date.
It also seeks a breakdown of voluntary contributions during the financial year up to Rs 20,000, up to Rs 2,000 in cash, up to Rs 2,000 in forms other than cash and above Rs 20,000.
Neha Malhotra, Director, Nangia Andersen LLP said that the additional disclosure requirements in ITR-7 are mostly quantitative in nature and are welcomed as it will lead to more comprehensive and transparent reporting, thereby reducing the number of cases of investigation.
Domestic and foreign contributions to corpus fund donations are now divided under two heads – corpus renovation or repair and others representing donations to corpus funds.
In addition, the form requires additional information on dividend income, dividend income of FIIs and dividend income at DTAA (Double Taxation Avoidance Agreement) rates.
Malhotra said this notification would provide sufficient time to taxpayers to understand and collate the information required to be disclosed. “It also ensures that the tax authorities have enough time to develop a utility for the ITR form, so that there is no last minute mess,” he added.
ITR-7 is filed by charitable/religious trust, political party, scientific research association, news agency association or institution, fund or institution or university or other educational institution or any hospital or other medical institution and university and college.
With PTI inputs