An individual wants to donate ₹5,000 in cash to a political party. Should the political party accept it in cash?
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2018
An individual wants to donate ₹5,000 in cash to a political party. Should the political party accept it in cash?
Answer & Explanation:
As per Finance Act, 2017, clause (d) is inserted in section 13A of the Income Tax Act, 1961, as per which "No donation exceeding ₹2,000 can be received by any political party otherwise than by an account payee draft or cheque or electronic clearing system or through electoral bond. Therefore, a political party cannot accept cash donation in excess of ₹2,000.
Topics: Income Tax Act, 1961
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