Approval of an Electoral Trust - add check-list with application
THE objective of the Electoral Trusts Scheme, 2013 is to lay down a procedure for grant of approval to an electoral trust which will receive voluntary contributions and distribute the same to the political parties. The scheme has been notified by the Central Government on 31 st January, 2013.
The term "electoral trust" is defined in section 2(22AAA) of the Income Tax Act, 1961. It means a trust so approved by the Board in accordance with the scheme made in this regard by the Central Government.
Under clause 22AAA of Section 2 of the Income Tax Act, 1961, the Central Board of Direct Taxes is empowered to approve an ‘Electoral Trust' for the benefit of provisions of section 13B of the Income Tax Act, 1961.
As per clause 5(1)(a) of the Electoral Trusts Scheme, 2013, an application for approval under section 2(22AAA) of the Income Tax Act, 1961 is to be made in duplicate in Form A. In order to avoid procedural delay in processing these applications, the applicants are advised to file along with the application in Form A, on or before the prescribed date, the duly filled in and signed check-list accompanied with documents required therein before the CIT/DIT under whose jurisdiction their cases fall. The applicant shall also enclose a copy of the said check-list while sending the copy of their application to the Member (IT), CBDT in terms of clause 5(1)(b) of the Electoral Trusts Scheme, 2013.
So as to standardize the process of filing application for approval of an Electoral Trust, the CBDT has come out with a detailed check-list.
Needless to mention this check-list is a very detailed one and would certainly pre-empt a person from going ahead with his noble intentions. Pehle AAP, he would say!
Letter F.No. -ITA-I dated December 10, 2013