Income Tax Act, 1961
Section 13A. SPECIAL PROVISION RELATING TO INCOMES OF POLITICAL PARTIES.
Any income of a political party which is chargeable under the head “Income from house property” or “Income from other sources” or any income by way of voluntary contributions received by a political party from any person shall not be included in the total income of the previous year of such political party :
Provided that – (a) Such political party keeps and maintains such books of account and other documents as would enable the [Assessing Officer] to properly deduce its income therefrom;
(b) In respect of each such voluntary contribution in excess of ten thousand rupees, such political party keeps and maintains a record of such contribution and the name and address of the person who has made such contribution; and
(c) The accounts of such political party are audited by an accountant as defined in the Explanation below sub-section (2) of section 288.
Explanation : For the purposes of this section, “political party” means an association or body of individual citizens of India registered with the Election Commission of India as a political party under paragraph 3 of the Election Symbols (Reservation and Allotment) Order, 1968, and includes a political party deemed to be registered with that Commission under the proviso to sub-paragraph (2) of that paragraph.