Section 136 - Deduction in respect of contributions given by companies to political parties
An Indian company can deduct eligible non-cash contributions to a political party or electoral trust, subject to the statutory definition and payment conditions.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
An Indian company can deduct eligible non-cash contributions to a political party or electoral trust, subject to the statutory definition and payment conditions.
Who should use this section
Donors/contributors claiming deduction for qualifying payments to the specified fund, institution, research/rural-development body or political recipient This applicability note is specific to section 136.
Old-law bridge
1961 Act section 80GGB
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert Cash contribution is not deductible. Tax deductibility does not replace Companies Act governance, board approval or disclosure compliance.
Connected Income-tax Rules, 2026 and Forms
No provision-specific Rule/Form is independently mapped in this tranche. General return, procedure and evidence rules can still apply.
Worked application
A company contributes ₹5 lakh by bank transfer to a qualifying political party. The amount may be deductible under section 136, subject to Companies Act and disclosure controls.
Evidence / compliance checklist
- For section 136, retain proof of payment and the instrument/recipient document that establishes statutory eligibility.
- Match beneficiary, ownership/residency/status conditions to the text for the relevant tax year (section 136: Deduction in respect of contributions given by companies to political parties).
- Preserve certificate/approval/registration details where the deduction depends on an approved institution or authority (section 136: Deduction in respect of contributions given by companies to political parties).
- Keep a computation showing the statutory ceiling, qualifying base and any cash/payment-mode restriction (section 136: Deduction in respect of contributions given by companies to political parties).
Common mistake
Claiming section 136 from a payment receipt alone without testing the statutory ceiling, recipient/instrument eligibility, payment mode and required certificate.
Recommended approach
For section 136, fix the governing tax year, identify the operative sub-section for “Deduction in respect of contributions given by companies to political parties”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- the amount contributed by it, other than by way of cash, during a tax year to
Judicial / interpretive bridge
No section-specific Supreme Court bridge is included for section 136 unless text-equivalence with the 2025 Act has been checked. Legacy cases should not be transplanted into section 136 merely because the subject is similar.
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 136 of the Income-tax Act, 2025 cover?
Section 136 covers deduction in respect of contributions given by companies to political parties. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 136?
Donors/contributors claiming deduction for qualifying payments to the specified fund, institution, research/rural-development body or political recipient This applicability note is specific to section 136.
Are there specific Rules or Forms for section 136?
No provision-specific Rule/Form independently mapped in this tranche.