Dept asks donors to parties why their I-T deductions shouldn’t be scrapped
Taxpayers who donated to Registered Unrecognised Political Parties (RUPP) to claim deductions under Sections 80GGC/ 80GGB of the Income Tax Act have started getting show-cause notices from the department. These notices question why the deduction should not be disallowed, as these political parties have confessed that most of the donation was returned to the ‘donors’ after taking a cut. Chartered Accountants said that donors will be required to reply to these notices soon and it is likely that the department will issue orders before the end of March.