Ban on anonymous offerings to parties above Rs 2000

New Delhi:As per the projected amendment, sent by the Commission to the government, and made part of its compendium on proposed electoral reforms that anonymous contributions above or equal to the amount of Rs 2000 should be prohibited.

On the lookout for to stem the flow of black money in polls, the EC has urged the government to revise laws to ban anonymous contributions of Rs 2000 and above prepared to political parties.

Whereas there is no statutory prohibition on receipt of anonymous donations by political parties but here is an indirect partial ban on anonymous contributions through the requirement of declaration of donations under section 29C of The Representation of the People Act, 1951. However, such declarations are mandated only for contributions above Rs 20,000.

Hasmukh Adhia,Revenue Secretary clarified that political parties cannot accept old 500 and 1,000 rupee notes as donations as both these bills have ceased to be legal tenders.

Revenue Secretary further said that Post demonetisation, no political party can accept donations in Rs 500 and Rs 1,000 notes since they were rendered illegal tenders.”

He said if there is any difference, political parties are as liable to be questioned by IT authorities as is anyone else. They enjoy no immunity.

The EC has also proposed that exemption of IT should only be extended to political parties that contest elections and win seats in Lok Sabha or assembly polls. Section 13A of the Income-tax Act, 1961 advises tax exemption to political parties for income from household assets, income by way of voluntary contributions, income from capital gains and income from other sources.