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CS Executive · Tax Laws and Practice · Incomes which do not form part of Total Income

Under the Income-tax Act, 2025 (applicable from the June 2027 session), which of the following incomes of a political party registered under section 29A of the Representation of the People Act, 1951 may be left out of its total income, subject to the prescribed conditions?

Voluntary contributions received from any person are excluded from a registered political party's total income, provided the Schedule VIII conditions are met. Business income and salary are not enumerated in the Schedule, so they do not qualify for this exclusion.

  1. AIncome from business of the party's printing press
  2. BIncome by way of voluntary contributions received from any personCorrect
  3. CIncome chargeable as salary of the party's employees
  4. DIncome from any source received in cash exceeding ₹ 2,000

Explanation

Schedule VIII (read with section 12) excludes income under house property, other sources and capital gains, plus voluntary contributions, for a registered party if conditions are met. Business income and salary are not listed. Cash receipts above ₹ 2,000 breach a condition rather than being an exempt category.

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