§ 137
Chapter VIII — Deductions To Be Made In Computing Total Income
Deduction in respect of contributions given by any person to political parties
Income-tax Act, 2025
Business owners, except local authorities and government-funded entities, 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.
📜 Official text of the section +
137. An assessee, (other than a local authority and an artificial juridical person
wholly or partly funded by the Government), shall be allowed a deduction for
the amount contributed by him, 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.
C.—Deductions in respect of certain incomes
Deductions in respect of profits and gains from industrial undertakings or
enterprises engaged in infrastructure development, etc.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 122Deductions to be made in computing total income§ 123An individual or a Hindu undivided family, shall be allowed a deduction§ 124Section 124§ 125Deduction in respect of contribution to Agnipath Scheme§ 126Government along with interest on both these contributions are held. Deduction in respect of health insurance premia§ 127Section 127