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CS Executive · Tax Laws and Practice · Classification and Tax Incidence on Companies

Section 136 of the Income-tax Act, 2025 grants a deduction for contributions to political parties. For the meaning of the word 'contribute' in this section, the Act relies on:

Under section 136(2) of the Income-tax Act, 2025, the word 'contribute' carries the meaning assigned to it in section 182 of the Companies Act, 2013. The Representation of the People Act is used only for registration of the political party, not for defining contribution.

  1. AThe definition in section 182 of the Companies Act, 2013Correct
  2. BThe definition in the Representation of the People Act, 1951 alone
  3. CThe definition in the SEBI Act, 1992
  4. DNo definition; the term takes its ordinary dictionary meaning

Explanation

Section 136(2) says 'contribute' and its grammatical variations have the same meaning as assigned in section 182 of the Companies Act, 2013. The Representation of the People Act is referred to only for registration of the party. The tax provision does not leave the term to the dictionary meaning.

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