Amendment in rules 17CA (Functions of electoral trusts) – Income Tax (27th Amendment) Rules, 2016 (Notification No. 92/2016, Dated 7th October, 2016)

CBDT through Income Tax 27^th amendment rules, amends the sub-rule (4) of rule 17CA (Functions of electoral trust – Sub-rule (4) Non acceptance of contributions).

The rule shall come into force from the date of their publication in the official Gazette.

In the Income-tax Rules, 1962, in rule 17CA, in sub-rule (4),-

(i) in clause (a), the word “and” occurring at the end shall be omitted;

(ii) after clause (b), the following shall be inserted, namely:-

“(c) from a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); and

(d) from a foreign source as defined in clause (j) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).”.

After the amendment the sub-rule (4) of rule 17CA is read as

“The electoral trust shall not accept contributions—

(a) from an individual who is not a citizen of India or from any foreign entity whether incorporated or not;

(b) from any other electoral trust which has been registered as a company under section 25 of the Companies Act, 1956 (1 of 1956) and approved as an electoral trust under the Electoral Trusts Scheme, 2013;

(c)from a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); and

(d) from a foreign source as defined in clause (j) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).”