Electoral Trusts Scheme, 2013

 
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In exercise of the powers conferred by clause (22AAA) of section 2 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following scheme for approval of electoral trusts, namely:-

1. Short title, commencement and application.--

(1) This Scheme may be called the Electoral Trusts Scheme, 2013.

(2) It shall come into force on the date of its publication in the Official Gazette.

(3) The scheme shall apply for the approval of any electoral trust under clause (22AAA) of section 2 of the Act.

2. Objectives of the Scheme.--

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.

3. Definitions.--

In this Scheme unless the context otherwise requires,-

(a) "Act" means the Income-tax Act, 1961 (43 of 1961);

(b) "Rules" means the Income-tax Rules, 1962;

(c) "Scheme" means the Electoral Trusts Scheme, 2012; and

(d) the words and expressions used herein but not defined and defined in the Act shall have the same meanings as assigned to them in the Act.

4. Eligibility.--

A company registered for the purposes of section 25 of the Companies Act, 1956 (1 of 1956) satisfying all of the following conditions shall be eligible to make an application for approval as an electoral trust, namely:-

(a) the company is registered on or after the 1st day of April, 2012 for the purposes of section 25 of the Companies Act, 1956 (1 of 1956);

(b) the name of the company registered for the purposes of section 25 of the Companies Act, 1956 (1 of 1956) shall include the phrase "electoral trust";

(c) the sole object of the electoral trust is to distribute the contributions received by it to the political party, registered under section 29A of the Representation of the People Act, 1951(43 of 1951); and

(d) the electoral trust shall have a permanent account number.

5. Procedure for approval.--

(1) The procedure for approval of an electoral trust shall be as follows, namely: -

(a) the application for approval under clause (22AAA) of section 2 of the Act shall be made in duplicate in FORM A, on or before the 31st day of July of the previous year relevant to the assessment year for which the approval is sought, to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the applicant;

(b) the applicant shall also send a copy of the application to the Member (Income-tax), Central Board of Direct Taxes accompanied by the acknowledgement receipt evidencing submission of application form in duplicate to the Commissioner of Income-tax or Director of Income-tax, as the case may be, having jurisdiction over the case;

(c) if any defect is noticed in FORM A or any document referred to therein is not attached with it, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, shall intimate the defect to the applicant within thirty days from the date of receipt of the application form in his office;

(d) the applicant shall remove the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, may be extended. However, the total period for removal of defect shall not exceed thirty days;

(e) if the...

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