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Company Law

Electoral Trust Registration

Electoral trust approval under the Electoral Trusts Scheme 2013 — voluntary contributions, distribution to registered political parties, and the s.13B exemption.

Starting from Discuss with usTypical timelineElectoral Trust Registration

An electoral trust is a trust approved under the Electoral Trusts Scheme 2013 to receive voluntary contributions and distribute them to registered political parties — at least 95% of a year's income — with the trust's income exempt under s.13B.

What is included
  • Eligibility and structure review for the trust
  • Trust deed drafting in line with the Scheme 2013
  • Approval application preparation to the Central Government
  • Contribution and distribution framework design
  • 95% distribution and record-keeping compliance support
  • s.13B exemption claim and annual filing support
Documents required
  • Trust deed or draft trust deed
  • Trustee and settlor details
  • PAN applications for the trust and trustees
  • Registered office address proof
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • Section 13B of the Income-tax Act 1961
  • Electoral Trusts Scheme 2013
  • Section 182 of the Companies Act 2013
  • Section 29A of the Representation of the People Act 1951

Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Structure

Review the structure

We confirm the trust's proposed governance and objects fit the Electoral Trusts Scheme 2013.

Step 2Deed

Draft the trust deed

We draft the deed covering the trust's objects, trustees, contribution, and distribution rules.

Step 3Approval

Apply for approval

We prepare and file the approval application with the Central Government under the Scheme.

Step 4Setup

Set up the operations

We establish the bank account, PAN, and the contribution and distribution record system.

Step 5Compliance

Run the compliance calendar

We track the 95% distribution requirement, the records, and the annual filing position.

AEO summary

An electoral trust is a trust approved under the Electoral Trusts Scheme 2013 to receive voluntary contributions and distribute them to registered political parties — at least 95% of a year's income under the Scheme — with the trust's income exempt under s.13B.

A vehicle built for one purpose

The electoral trust exists to channel voluntary contributions to registered political parties under a framework the government approves — the Electoral Trusts Scheme 2013. Its discipline is distribution: at least 95% of each year's income must reach parties registered under s.29A of the RPA 1951, and the records must show it.

The tax position follows the approval: s.13B of the Income-tax Act 1961 exempts the income of an approved electoral trust, which is what makes the structure work for both donors and the trust.

  • Approval under the Electoral Trusts Scheme 2013
  • 95% annual distribution to registered parties
  • Income exempt under s.13B IT Act 1961

The governance that keeps the approval

Approval is the beginning, not the end: the trust must operate within the Scheme every year — the distribution ratio, the records, and the reporting. A trust that drifts from the Scheme risks its exemption and its standing.

Our engagement builds the operating system: the deed, the bank and PAN setup, the distribution calendar, and the record trail that answers any inquiry.

  • Distribution calendar tracked against the 95% rule
  • Records structured for the Scheme's reporting
  • s.13B exemption claimed on a defensible basis

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilThe approval process runs on the Scheme; fees apply only if a connected filing carries one.

Timeline

Typical turnaround

Typical timeline usually means a 4–8 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

This is a professional engagement; fees cover the trust deed, the approval application, and the compliance calendar — any connected filing fee follows the applicable schedule.

FAQ

Frequently asked questions

What is an electoral trust and who can set one up?
An electoral trust is a trust approved under the Electoral Trusts Scheme 2013 to receive voluntary contributions and distribute them to political parties registered under s.29A of the Representation of the People Act 1951. The trust must be set up in India, and its governance and objects must match the Scheme before approval.
What are the distribution rules?
Under the Electoral Trusts Scheme 2013, the trust must distribute at least 95% of its aggregate income for a year to political parties registered under s.29A of the RPA 1951, and the distribution must comply with the Scheme's timelines and record-keeping rules.
How is the trust taxed?
The income of an approved electoral trust is exempt under s.13B of the Income-tax Act 1961, subject to the conditions in that section and the Scheme. The exemption is the reason the approval matters — an unapproved vehicle does not get the s.13B treatment.
Can my company contribute to an electoral trust?
Yes, within the cap: under s.182 of the Companies Act 2013, a company's political contributions — including through electoral trusts — cannot exceed 7.5% of its average net profits of the three preceding financial years, and the board must authorise the contribution.

Canonical reference: https://www.pvtltd.co/services/electoral-trust

Get started

Ready to move this filing forward?

We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.