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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 excluded from its total income under Schedule VIII, subject to conditions?

Income from house property is covered. Schedule VIII excludes a registered political party's income under house property, other sources, capital gains and voluntary contributions, subject to conditions. Business profits and income of a separate trading entity are not in that list, so they are not covered.

  1. AProfits and gains of business or profession of the party
  2. BIncome chargeable under the head 'Income from house property'Correct
  3. CSalary income of the party's employees
  4. DAny income of the party's trading subsidiary

Explanation

Schedule VIII lists, for a registered political party, income chargeable under house property, other sources or capital gains, and voluntary contributions. Business profits are not in this list, so the exclusion does not extend to them. Salary of employees and subsidiary income are not party income covered by the Schedule.

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