Meaning of Political Parties

To be a member of a political party implies to be a part of a group of

individuals who share a shared ideology and who adhere to a common
platform and a common course of action. There is cohesion in terms of
behaviour and strategy within the party. It need to be highly structured, and
a successful political party is expected to have members who adhere to the
rules.
According to Maclver, "a political party is an association organized in
support of some principles or policies which by constitutional means it
endeavours to make the determinant of Government." Herman Finer
defined it as "an organized body with voluntary membership, its concerted
energy being employed in the pursuit of political power." Edmund Burke, it
is "a body of men united for promoting by their joint endeavours the
national interest upon some particular principle in which they are all
agreed."
The sections relating to Tax exemption on Political Parties Section
13A is the Section in the Income Tax Act 1961 that talks about the
exemption of income received by the Political parties.
Section 13A of the Income Tax Act, 1961 reads as under. "13A. Any
income of a political party which is chargeable under the head "Income
from house property" or "Income from other sources" or "Capital gains" or
any income by way of voluntary contributions received by a political party
from any person shall not be included in the total income of the previous
year of such political party : Provided that - (a) such political party keeps
and maintains such books of account and other documents as would
enable the Assessing Officer to properly deduce its income therefrom; (b)
in respect of each such voluntary contribution in excess of twenty thousand
rupees, such political party keeps and maintains a record of such
contribution and the name and address of the person who has made such
contribution; and (c) the accounts of such political party are audited by an
accountant as defined in the Explanation below sub-section (2) of section
288 : Provided further that if the treasurer of such political party or any
other person authorized by that political party in this behalf fails to submit a
report under sub-section (3) of Section 29C of the Representation of the
People Act, 1951 (43 of 1951) for a financial year, no exemption under this
Section shall be available for that political party for such financial year.
Explanation. - For the purposes of this Section, "political party" means a
political party registered under section 29A of the Representation of the
People Act, 1951 (43 of 1951)."   Plain reading of the above Section
explains that any income which is chargeable under the head of "Income
from house property" or "Income from other sources" or "Capital gains" or
any income by way of voluntary contributions received by any person is not
to be added to the total income of the previous year of such political party.
For any political party to avail of the benefits of Section 13A should comply
with the following conditions. The Political party should be registered under
Section 29A of the Representation of People Act, 1951. The Political party
should maintain books of accounts and other documents for the formulation
of income. To maintain a record of contributions received above 20000/-
rupees that include the name of the donor, his address etc. To get the
books of accounts audited by a Chartered Accountant. As per 29C of the
Representation of People Act, 1951, the political party has to furnish the list
of all the contributions received by them by way of above 20000/- to the
Election Commission of India for the relevant financial year to avail benefit
of exemption under Section 13A. Another important point to be noted
before the availment of the benefit under Section 13A is that the political
party should be registered under Section 29A of the Representation of the
People Act, 1951.