YSR Congress’ Tax Exemption to be stalled!

The Election Commission is planning to stall the tax exemption granted to YSR Congress. The party along with nine other parties failed to submit their income sources for the year 2012-2013. The Election Commission now had forwarded the suggestion to cancel YSR Congress’ Tax Exemption to the Central Board of Direct Taxes. The other parties include small ones such as Manavathawadi Party, Rastriya Mahila Jana Shakti party, Lok Tantrik Manavathawadi Party etc.

Political parties are exempted from tax on their income through section 13 A of IT Act 1961. However, they have to maintain a book of account for donations or income above Rs 20,000 and they have to submit the records every year to the Election Commission and Tax sleuths. As YSR Congress failed to submit those records, they will now face the music of opposition parties who are alleging that the party is dealing with ill gotten money.