C.A. Kalpesh Sanghavi | Black Money Act -Page | F60-B . 1 |
POLITICAL PARTIES AND ET |
Question 1
The books of account maintained by a National Political Party registered with Election Commissioner for the year disclose the following receipts:
| Rs. |
Rent of property let out to a departmental store at Chennai | 6,00,000 |
Interest on deposits other than Banks | 5,00,000 |
Contributions from 100 persons (who have secreted their names) of Rs. 21,000 each | 21,00,000 |
Contribution @ Rs. 11 each from 1,00,000 members in cash | 11,00,000 |
Net profit of Cafeteria run in the premises at Delhi | 3,00,000 |
Compute the total income of the political party, with reasons for inclusion or otherwise.
Question 2
Electoral Trust invests the donations received by it in say Bank FDR, then the interest from such investment is exempt under section 13B and shall not be taxable, is the view of trust. You are required to offer your comments for the same.
Donations received by Electoral Trust | 10,00,00,000 |
Interest earned by Electoral Trust | 40,00,000 |
You are required to answer the tax consequence if the trust distributes 9,50,00,000 or 9,00,00,000 to political parties.