Schedule VIII — INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS

[See section 12]
INCOME NOT TO BE INCLUDED IN THE TOTAL
INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS
In computing the total income of a tax year of any eligible person, being a polit -
ical party or an electoral trust, as mentioned in column C of the Table below, the
43. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
income mentioned in column B of the said Table shall not be included, subject to
the conditions mentioned in column D of the said Table, and the expressions used
in columns B to D of the said Table, shall have the meanings respectively assigned
to them in the Note below the said Table:
TABLE
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
1. Any income which
is chargeable un-
der the head “In -
come from house
property” or “In -
come from other
sources” or “Cap-
ital gains” or any
income by way of
voluntary contri -
butions received
from any person.
A political party
registered under
section 29A of the
Representation
of the People Act,
1951 (43 of 1951).
( a) Such political party keeps
and maintains such books of
account and other documents
as would enable the Assessing
Officer to properly deduce its
income therefrom;
( b) in respect of each such volun-
tary contribution other than
contribution by way of elector-
al bond in excess of ` 20,000,
such political party keeps and
maintains a record of such
contribution and the name
and address of the person who
has made such contribution;
( c) the accounts of such political
party are audited by an ac -
countant;
( d) no donation exceeding ` 2,000
is received by such political
party otherwise than by an
account payee cheque drawn
on a bank or an account payee
bank draft or use of electronic
clearing system through a bank
account or through such other
electronic mode as may be
prescribed or through electoral
bond;
( e) the treasurer of such political
party or any other person au-
thorised by that political party
in this behalf submits a report
under section 29C(3) of the
Representation of the People
Act, 1951 (43 of 1951) for such
tax year; and
Sl.
No.
Income not to be
included in total
income
Eligible persons Conditions
A B C D
( f) such political party furnishes
a return of income for the
tax year 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).
2. Any voluntary
contributions re -
ceived.
An electoral trust. ( a) Such electoral trust distrib -
utes to any political party,
registered under section 29A
of the Representation of the
People Act, 1951 (43 of 1951),
during the said tax year, 95%
of the aggregate donations
received by it during the said
tax year along with the sur -
plus, if any, brought forward
from any earlier tax year; and
( b) such electoral trust functions
as per the rules made by the
Central Government.
Note.—For the purposes of this Schedule, “electoral bond” means a bond referred to
in the Explanation to section 31(3) of the Reserve Bank of India Act, 1934 (2 of 1934).