A street stall selling Congress merchandise outside the deserted party headquarters on counting day for Assembly elections, on March 10, 2022.
Political parties will now have to give details of voluntary contributions under different categories received by them 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 the political party is registered under section 29A of the Representation of People Act, 1951, along with the registration number and date of registration.
It also seeks the breakup of voluntary contributions of up to Rs 20,000, up to Rs 2,000 in cash, up to Rs 2,000 in forms other than cash and more than Rs 20,000 received during the financial year.
Nangia Andersen LLP Director Neha Malhotra said additional disclosure requirements in ITR-7 are mostly quantitative in nature and are welcomed as this would result in more comprehensive and transparent reporting, leading to reduced instances of scrutiny cases.
Domestic and foreign contributions for corpus fund donations have now been further bifurcated under two heads -- corpus representing donations for the renovation or repair and other corpus funds.
Further, the form requires additional information on dividend income, dividend income of FII and dividend income chargeable at DTAA (double taxation avoidance agreement) rates.
Malhotra said this notification will provide enough time for assesses to understand and collate the information required to be disclosed. "This also ensures that tax authorities have enough time to develop a utility for the ITR forms, ensuring no last-minute glitches," she added.
ITR-7 is filed by charitable/ religious trust, political party, scientific research association, Newsagency 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
