Monday, October 14, 2013

Income Tax Return of Political Parties U/S 139(4B)

Return of Income of Political Parties [Section 139(4B)]
  • 1. Under this section, a political party is required to file a return of income if, before claiming exemption under section 13A, the party has taxable income. The grant of exemption from income-tax to any political party under section 13A is subject to the condition that the political party submits a return of its total income within the time limit prescribed under section 139(1).
  • 2. The chief executive officer of the political party is statutorily required to furnish a return of income of the party for the relevant assessment year, if the amount of total income of the previous year exceeds the basic exemption limit before claiming exemption under section 13A.
  • 3. The return must be filed in the prescribed form and verified in the prescribed manner setting forth such other particulars as may be prescribed by the CBDT.
  • 4. The provisions of the Act would apply as if it were a return required to be furnished under section 139(1).

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