Amendment of section 13A
Section 11 of the Finance Act, 2017 deals with amendment of section 13A. Amendment of section 13A. 11. In section 13A of the Income-tax Act, with effect from the 1st day of April, 2018,— (I) | in the first proviso,— (i) | in clause (b),— (A) | after the words "such voluntary contribution", the words "other than contribution by way of electoral bond" shall be inserted; The Act was enacted on 17 Apr 2017.
Amendment of section 13A.
11. In section 13A of the Income-tax Act, with effect from the 1st day of April, 2018,—
(I) in the first proviso,—
(i) in clause (b),—
(A) after the words "such voluntary contribution", the words "other than contribution by way of electoral bond" shall be inserted; (B) the word "and" occurring at the end shall be omitted;
(ii) in clause (c), the word "; and" shall be inserted at the end; (iii) after clause (c), the following clause shall be inserted, namely:—
'(d) no donation exceeding two thousand rupees is received by such political party otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through electoral bond.
Explanation.—For the purposes of this proviso, "electoral bond" means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934 (2 of 1934).'; Section 11, The Finance Act, 2017.
(II) after the second proviso, the following proviso shall be inserted, namely:— "Provided also that such political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) of section 139 on or before the due date under that section.".
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Association For Democratic Reforms vs Union Of India
Court's Decision & Legal Precedent
The Electoral Bond Scheme violates Article 19(1)(a) by preventing disclosure of electoral contributions essential to informed voting. Voters have fundamental right to information about political funding as political parties are focal units in electoral system affecting policy outcomes. The purposes cited (curbing black money and protecting donor privacy) do not justify this extensive non-disclosure. Alternative measures like Electoral Trusts, direct banking channels with disclosure at Rs. 20,000+ threshold, and sector-specific audit requirements satisfy the objectives with lesser impact on fundamental rights. Removal of contribution caps in Section 182 of Companies Act is manifestly arbitrary as it fails to distinguish between profit-making and loss-making companies and treats corporations like individuals despite different capacities to influence politics. The right to know trumps donor privacy in balancing analysis as political contributions are public acts affecting public policy and representative democracy.
On this section: Exempted political parties from maintaining records of electoral bond contributions. Held unconstitutional as it prevented accountability and transparency.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 11
What have the courts held on Section 11 of the Finance Act?
Association For Democratic Reforms vs Union Of India (15 Feb 2024) is the leading judgment on this section among those set out below: Exempted political parties from maintaining records of electoral bond contributions. Held unconstitutional as it prevented accountability and transparency.
How do I find court cases under Section 11 of the Finance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2017 11, section 11 Finance Act 2017, section 11 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Association For Democratic Reforms vs Union Of India (15 Feb 2024).
What should I read with Section 11 of the Finance Act, and has it changed?
Its own text turns on section 139 (Commencement of this Part), Income-tax Act 13A (Special provision relating to incomes of political parties), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.
When was Section 11 of the Finance Act enacted?
Section 11 of the Finance Act, cited as Finance Act 2017 11, was enacted on 17 Apr 2017. It is in force as at the date shown on this page.
Other sections of this Act
- First Schedule. Income-tax8321 words
- 2. Income-tax4071 words
- 148. Amendment of Chapter VIB1616 words
- 47. Amendment of section 115JB1176 words
- 6. Amendment of section 10856 words
- Sixth Schedule. Sixth Schedule820 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.