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81. Deduction for political contributions
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81. Deduction for political contributions.—(1) A person shall be allowed a deduction in respect of any contribution made by him in the financial year to a political party or electoral trust.
(2) The deduction under sub-section (1) shall not exceed five per cent. of—
(a) the average of the net profit determined in accordance with the provisions of section 349 and section 350 of the Companies Act, 1956 (1 of 1956) during the three immediately preceding financial years, in the case of a company ; and
(b) the "gross total income from ordinary sources", in any other case.
(3) In this section, the word "contribution", with its grammatical variation, shall have the same meaning as assigned to it under section 293A of the Companies Act, 1956 (1 of 1956).
Clause 81 seeks to provide that a person shall be allowed a deduction in respect of any contribution made by him in a financial year to a political party or electoral trust.
The said clause further provides that the deduction shall not exceed five per cent. of the average of the net profit determined in accordance with the provisions of sections 349 and 350 of the Companies Act, 1956 during the three immediately preceding financial years, in the case of a company and five per cent. of the gross total income from ordinary sources, in any other case.
The clause also defines the term "contribution".
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