Section 29C of The Representation of the People Act, 1951
Declaration of donation received by the political parties.
- (1)The treasurer of a political party or any other person authorised by the political party in this behalf shall, in each financial year, prepare a report in respect of the followings namely:
- (a)the contribution in excess of twenty thousand rupees received by such political party from any person in that financial year;
- (b)the contribution in excess of twenty thousand rupees received by such political party from companies other than Government companies in that financial year. 1[Provided that nothing contained in this sub-section shall apply to the contributions received by way of an electoral bond. Explanation.—For the purposes of this sub-section, "electoral bond" means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934 (2 of 1934).]
- (2)The report under sub-section (1) shall be in such form as may be prescribed.
- (3)The report for a financial year under sub-section (1) shall be submitted by the treasurer of a political party or any other person authorised by the political party in this behalf before the due date for furnishing a return of its income of that financial year under section 139 of the Income-tax Act, 1961 (43 of 1961) to the Election Commission.
- (4)Where the treasurer of any political party or any other person authorised by the political party in this behalf fails to submit a report under sub-section (3), then, notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), such political party shall not be entitled to any tax relief under that Act.]
Summary
- The treasurer of a political party must create a report every financial year listing specific donations they received.
- This report must include any contribution that is higher than twenty thousand rupees from a single person or private company.
- Donations made through electoral bonds do not need to be included in this specific annual report.
- The report must be given to the Election Commission before the party files its income tax return for that year.
- If a party fails to submit this report on time, they lose their right to get tax relief on their income.
Practical examples
FAQ
1. What is the minimum donation amount that must be reported under Section 29C of the Representation of the People Act, 1951?
Under Section 29C of the Representation of the People Act, 1951, any contribution that exceeds twenty thousand rupees in a financial year must be reported.
2. Do electoral bonds have to be reported in the annual donation list?
No, Section 29C of the Representation of the People Act, 1951, says that the reporting requirement does not apply to contributions received by way of an electoral bond.
3. What happens if the treasurer does not submit the report required by Section 29C of the 1951 Act?
If a party fails to submit the report required by Section 29C of the Representation of the People Act, 1951, the political party will not be entitled to any tax relief.
Test yourself
1.Under Section 29C of The Representation of the People Act, 1951, what is the reporting threshold for a contribution from a single person?
2.Under Section 29C of the Representation of the People Act, 1951, to which authority must the donation report be submitted?