Political Contribution Disclosure under Section 29C

The Representation of the People Act, 1951 regulates both the receipt and disclosure of political contributions by political parties. Section 29B specifies which contributions may be accepted, while Section 29C requires annual disclosure of contributions crossing the statutory threshold. Together, they link political funding with source restrictions, transparency and tax benefits.

Restrictions on receiving contributions

Under Section 29B, a political party may accept any amount voluntarily offered by a person or company, but the entitlement is subject to statutory restrictions.

• A party cannot accept a contribution from a government company.
• A party cannot accept a contribution from a foreign source as defined in the Foreign Contribution (Regulation) Act, 2010.
• A company's contribution remains subject to the Companies Act, 2013, including its rules governing corporate political contributions.
• Section 29B itself prescribes no monetary ceiling, but only voluntarily offered contributions may be accepted.

Contributions requiring disclosure

Under Section 29C, the party's treasurer or another authorised person must prepare a financial year-wise report of specified contributions.

• The report covers each contribution exceeding Rs 20,000 received from any person and separately covers such contributions from companies other than government companies.
• A contribution of exactly Rs 20,000 does not cross the statutory reporting threshold.
• Donor particulars and contribution details are reported in Form 24A under Rule 85B of the Conduct of Elections Rules, 1961.

Filing and consequence of default

The report must be submitted to the Election Commission of India before the due date for furnishing the party's income-tax return under Section 139 of the Income-tax Act, 1961.

• Failure to submit the report makes the party ineligible for income-tax relief under Section 29C(4).