§ 136
Chapter VIII — Deductions To Be Made In Computing Total Income

Deduction in respect of contributions given by companies to political parties

Income-tax Act, 2025

Indian companies can claim a tax deduction for contributions made to registered political parties or electoral trusts. The contribution must be made during a tax year and cannot be in cash.

  • Eligible recipients include parties registered under the Representation of the People Act, 1951, and electoral trusts.
This deduction aims to encourage transparent and legitimate funding of political entities.

📜 Official text of the section +
136. (1) An assessee, being an Indian company, shall be allowed a deduction for the amount contributed by it, other than by way of cash, during a tax year to a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) or an electoral trust. (2) For the purposes of this section, the term “contribute”, with its grammatical variations and cognate expressions shall have the same meaning as assigned to it in section 182 of the Companies Act, 2013 (18 of 2013). Deduction in respect of contributions given by any person to political parties.

Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.