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

Under the Income-tax Act, 2025, which recipient is eligible to receive a deductible contribution from an Indian company under section 136?

A political party registered under section 29A of the Representation of the People Act, 1951 is an eligible recipient, along with electoral trusts. Unregistered parties, informal associations and charitable trusts are not covered by section 136 of the Income-tax Act, 2025.

  1. AA political party registered under section 29A of the Representation of the People Act, 1951Correct
  2. BAny association of persons formed for political discussion
  3. CA political party not registered with the Election Commission
  4. DA charitable trust running a school

Explanation

Section 136(1) names two eligible recipients: a political party registered under section 29A of the Representation of the People Act, 1951, and an electoral trust. Unregistered parties, loose associations and charitable trusts are not named, so contributions to them do not qualify.

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