Deduction in respect of contributions given by companies to political parties.
In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party or an electoral trust.
No deduction shall be allowed under this section in respect of any sum contributed by way of cash.
Note:
The word “contribute”, with its grammatical variation, has the meaning assigned to it under section 293A of the Companies Act, 1956
*Section 239A of Companies Act, 1956 the maximum amount or the aggregate of amounts which may be so contributed by a company in any financial year shall not exceed 5% of its average net profits determined in accordance with the provisions of sections 349 and 350 during the three immediately preceding financial years.