Facts for Prelims (FFP)
Source: IE
Context: The Congress party alleged that the Income Tax Department instructed banks to transfer over Rs. 65 crore from its accounts, amidst a pending challenge of a Rs. 210 crore tax demand.
- Section 13A of the Income Tax Act, 1961 provides 100% exemption to political parties on income from specified sources, subject to conditions such as maintaining proper accounts, auditing, and reporting donations.
- Parties must file returns if their total income exceeds the exemption limit.
- Despite the exemption, political parties are required to file income tax returns, with the responsibility falling on the Chief Executive Officer of the party.
