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#Budget2017: Political Parties Have To File IT Returns In Time; Can't Receive Above Rs.2000/- From One Person

LiveLaw News Network
1 Feb 2017 9:16 AM GMT
#Budget2017: Political Parties Have To File IT Returns In Time; Cant Receive Above Rs.2000/- From One Person
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Union Finance Minister Arun Jaitely while presenting the General Budget 2017-18 in Parliament today said that the political party can receive maximum donation up to Rs. 2,000 in cash from one person. He also proposed that banks will issue Electoral Bonds to enable donations to political parties.

He also proposed that every political party will have to file its Income-Tax Return within the prescribed time limit.

He also stated that donations to political parties can soon be made by purchasing electoral bonds from authorized banks. T

The Government will soon frame a Scheme in this regard and an amendment is being proposed to the Reserve Bank of India Act to enable the issuance of electoral bonds.

He said that a donor could purchase bonds from authorised banks against cheque and digital payments only.

These bonds shall be redeemable in the designated account of a registered political party within the prescribed time limit from issuance of bond.

“Despite amendment to the Representation of Peoples’ Act, the Companies Act and the Income Tax Act to incentivise political donations by individuals, partnership firms, HUFs and companies, political parties continue to receive most of their funds through anonymous donations which are shown in cash”, He said.

He added that the situation has only marginally improved since the provisions were introduced, such as granting exemption from payment of tax to both the donor and the donee, provided a list of donors is maintained, who had contributed more than Rs. 20,000.

This article has been made possible because of financial support from Independent and Public-Spirited Media Foundation.

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