Income-tax
(First Amendment) Rules, 2013 - Insertion of rule 17CA and Form No. 10BC
Notification No. 8/2013, [F. No.
142/20/2012-TPL], dated 31.01.2013
In exercise of
the powers conferred by clause (b) of section 13B, read with section 295 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the
following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules
may be called the Income-tax (First Amendment) Rules, 2013.
(2) They shall come into force on the date
of their publication in the Official Gazette.
2. In the
Income-tax Rules, 1962, after rule 17C, the following shall be inserted,
namely:-
"17CA.
Functions of electoral trusts.
(1) The
functions of an electoral trust referred to in section 13B shall be as provided
in this rule.
(2) The
electoral trust may receive voluntary contributions from-
(a) an individual who is a
citizen of India;
(b) a company which is registered
in India; and
(c) a firm or Hindu undivided
family or an Association of persons or a body of individuals, resident in
India.
(3) A receipt
indicating the following shall be issued by the trust immediately on receipt of
any contribution indicating the following:-
(a) name and address of the
contributor;
(b) Permanent account number of
the contributor or passport number in the case of a citizen who is not a
resident;
(c) amount and mode of
contribution including name and branch of the Bank and date of receipt of such
contribution;
(d) name of the electoral trust;
(e) Permanent account number of
the electoral trust;
(f) date and number of approval
by the prescribed authority; and
(g) Name and designation of the
person issuing the receipt.
(4) The
electoral trust shall not accept contributions-
(a) from an individual who is not
a citizen of India or from any foreign entity whether incorporated or not; and
(b) from any other electoral
trust which has been registered as a company under section 25 of the Companies
Act, 1956 (1 of 1956) and approved as an electoral trust under the Electoral
Trusts Scheme, 2013.
(5) The
electoral trust shall accept contributions only by way of an account payee
cheque drawn on a bank or account payee bank draft or by electronic transfer to
its bank account and shall not accept any contribution in cash.
(6)
The electoral trust shall not accept any contribution without the permanent
account number of the contributor, who is a resident and the passport number in
the case of a citizen of India, who is not a resident.
(7) A political
party registered under section 29A of the Representation of the People Act,
1951 (43 of 1951) shall be an eligible political party and an electoral trust
shall distribute funds only to the eligible political parties.
(8) (i)
The electoral trust may, for the purposes of managing its affairs, spend up to
five per cent, of the total contributions received in a year subject to an
aggregate limit of rupees five hundred thousand in the first year of
incorporation and rupees three hundred thousand in subsequent years;
(ii) the
total contributions received in any financial year along with the surplus from
any earlier financial year, if any, as reduced by the amount spent on managing
its affairs, shall be the distributable contributions for the financial year;
(iii) an
electoral trust shall be required to distribute the distributable contributions
received in a financial year, referred to in item (ii), to the eligible
political parties before the 31st day of March of the said financial year,
subject to the condition that at least ninety five per cent, of the total
contributions received during the financial year along with the surplus brought
forward from earlier financial year, if any, are distributed.
(9) The trust
shall obtain a receipt from the eligible political party indicating the name of
the political party, its permanent account number, registration number, amount
of fund received from the trust, date of the receipt and name and designation
of person signing such receipt.
10) The electoral
trust shall not utilize any contributions for the direct or indirect benefit of
the members or contributors, or for any of the following persons, namely:-
(a) the members (including
members of its Executive Committee, Governing Committee or Board of Directors)
of the electoral trust;
(b) any relative of such Members;
(c) where such member or
contributor is a Hindu undivided family, a member of that Hindu undivided
family;
(d) any person who has made a
contribution to the trust;
(e) any person referred in
sub-section (3) of section 13 of the Act; and
(f) any concern in which any of
the persons referred to in clauses (a), (b), (c), (d) and (e) has a substantial
interest.
11) (i)
An electoral trust shall keep and maintain such books of account and other documents
in respect of its receipts, distributions and expenditure as may enable the
computation of its total income in accordance with the provisions of the Act;
(ii) The
electoral trust shall also maintain a list of persons from whom contributions
have been received and to whom the same have been distributed, containing the
name, address and permanent account number of each such person along with the
details of the amount and mode of
its payment
including the name and branch of the bank.
12) Every
electoral trust shall get its accounts audited by an accountant as defined in
the Explanation below sub-section (2) of section 288 and furnish the
audit report in Form No. 10BC along with particulars forming part of its
Annexure, to the Commissioner of Income-tax or the Director of Income-tax, as
the case may be, having jurisdiction over the electoral trust, on or before the
due date specified for furnishing the return of income by a company under
section 139.
13) An electoral
trust shall maintain a regular record of proceedings of all meetings and
decisions taken therein.
14) Every
electoral trust shall furnish a certified copy of list of contributors and a
list of political parties, to whom sums were distributed in the manner
prescribed in sub-rule (8), to the Commissioner of Income-tax or the Director
of Income-tax, as the case may be, every year along with the audit report as
stipulated under sub- rule (12).
15) Any change
in the shareholders, subsequent to the approval granted under the Electoral
Trusts Scheme, 2013 shall be intimated to the Board within thirty days of such
change."
3.
.n
Appendix II, after Form No. 10 BB, the following Form and its annexure shall be
inserted, namely.-
.
.
.
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