CBDT standardizes process for approval of Electoral Trust

Notification No. 173/62/2022-ITA-1, dated 11-07-2022

An electoral trust is a trust approved by CBDT in accordance with Electoral Trusts Scheme, 2013. Any voluntary contribution received by the electoral trust shall be included in its income except where 95% of the contribution is distributed to the eligible political parties.

As per clause 5(1)(a) of the Electoral Trust Scheme, 2013, an application for approval is to be made in duplicate in Form A. To avoid procedural delay in processing these applications, the applicants are advised to file along with the application in Form A, the duly filled in and signed check-list accompanied with documents required therein.

In supersession of the order issued in F.No.173/1S8/2013-ITA- 1 dated 10-12-2023, the Central Board of Direct Taxes (CBDT) has issued the new format of the check-list. The revised check-list seeks the following additional details from Electoral Trust:

a) For electoral Trusts previously approved by CBDT under Section 2(22AAA), whether the contribution report(s) is/are submitted before the ECI within the stipulated time as per guidelines issued by the Election Commission of India on 06.06.2014.

For electoral Trusts previously approved by CBDT under Section 2(22AAA), acknowledged true copies of the contribution reports submitted to the ECI may be enclosed.

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