Notsensibles guitarist Steven Hartley told the BBC News website the song - which features the chorus line "I'm in love with Margaret Thatcher, I'm in love with Margaret Thatcher, I'm in love with Maggie T" - had been conceived as a satirical swipe at the former Conservative leader.
But the corporation said that 1980 punk song I'm In Love With Margaret Thatcher - the subject of a pro-Thatcher Facebook campaign - would be played in full on the Chart Show if it reached a high chart position.