As per section 13B of the Income Tax Act, 1961, the voluntary contributions received by an electoral trust during the year is not included in its income :

CS Executive · Tax Laws · PYQS · June 2022
As per section 13B of the Income Tax Act, 1961, the voluntary contributions received by an electoral trust during the year is not included in its income :
(A) When 85% of contribution is distributed in the year
(B) To the extent of 10 lakhs
(C) When 95% of contribution is distributed in the year
(D) To the extent of 50% of contribution of 100 lakhs whichever is less

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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