CBDT brings out 19-point format for Electoral Trusts
December, 12th 2013
As poll season gathers momentum, the CBDT has brought out a 19-point fresh standard format for 'Electoral Trusts', created by corporate and business houses to fund political parties.
The checklist has been devised as such that the business firm could enumerate all relevant details about the company, its shareholders and other financial details of contributions and donations in a comprehensive pattern before submitting it to the Income Tax department.
"The checklist has been made to underline what is essential when filing details of the Electoral Trust or ET as it is popularly called. The Central Board of Direct Taxes brought out the three-page document yesterday," a senior I-T official said.
The checklist asks for some relevant questions for the business houses to furnish, like "whether the Electoral Trust is a registered company for the purposes of section 25 of the Companies Act, whether the sole object of the trust is to distribute the contributions to political parties registered under section 29A of the Representation of the People Act and whether any change in the shareholders, subsequent to the approval granted under the scheme has occurred."
The ET scheme allows business entities to register non-profit companies having 'Electoral Trust' as part of their names, thus differentiating them from the companies having other business interests.
The government notified the ET Scheme earlier this year to streamline the process and bring in more transparency in the funds provided by corporate entities to political parties for their election-related expenses.
The last date for filing these details with the I-T department is November 30.