Political parties are exempted from tax on their income through section 13 A of IT Act 1961. However, they have to maintain a book of account for donations or income above Rs 20,000.
The Central Information Commission(CIC) last month said it will seek a report from Income Tax department and Directorate of Estate regarding tax exemptions claimed by political parties and their assets to ascertain whether there is enough indirect funding from the government to bring them under the ambit of RTI Act.
