Seeking to stem the flow of black money in polls, the Election Commission has urged the government to amend laws to ban anonymous contributions of Rs 2,000 and above made to political parties. Seeking to stem the flow of black money in polls, the Election Commission has urged the government to amend laws to ban anonymous contributions of Rs 2000 and above made to political parties. While the Modi government and its representatives have made much of using the de-monetization move to claim that it is a drive against ‘black money’, the same government is loth to make itself part of a rigorous scrutiny. The opposition Congress, too appears to have joined this unholy nexus.
 
In April-May 2016, during and after the Budget Session, the Finance Ministry through a Budgetary declaration sought to exempt political parties from previously interpreted violations under the Foreign Contribution Regulation (FCR Act). Corporate donations from companies that were foreign but also incorporated in India were suddenly exempted from the Act. Both the BJP and Congress had been found, by the Delhi High Court to have violated the law.

There is no constitutional or statutory prohibition on receipt of anonymous donations by political parties. But there is an "indirect partial ban" on anonymous donations through the requirement of declaration of donations under section 29C of The Representation of the People Act, 1951.

But, such declarations are mandated only for contributions above Rs 20,000.

The Association for Democratic Reforms (ADR), an overwhelming 63 per cent of the funds received by political parties are in cash.
 
Only on Saturday, December 17, the government had said that political parties depositing old 500 and 1,000 rupee notes in their accounts will be exempt from income tax+ provided the donations taken are below Rs 20,000 per individual and properly documented. Revenue Secretary Hasmukh Adhia said the government is not tinkering with the tax exemption available to political parties and they are free to deposit old 500 and 1000 rupee notes in their bank accounts. But these deposits will, however, be subject to the condition that individual donations taken in cash do not exceed Rs 20,000 and are properly documented with full identity of the donor. Only income under the head 'salaries and income from business or profession' are chargeable to tax in the hands of political parties in India. Section 13A of the Income-tax Act, 1961 confers tax exemption to political parties for income from house property, income by way of voluntary contributions, income from capital gains and income from other sources.
 
There is no constitutional or statutory prohibition on receipt of anonymous donations by political parties. But there is an "indirect partial ban" on anonymous donations through the requirement of declaration of donations under section 29C of The Representation of the People Act, 1951.  But, such declarations are mandated only for contributions above Rs 20,000.

New Amendments proposed by Election Commission
 
As per the proposed amendment, sent by the Commission to the government, and made part of its compendium on proposed electoral reforms, "anonymous contributions above or equal to the amount of rupees two thousand should be prohibited."
 
The Commission has also proposed that exemption of Income Tax should only be extended to political parties that contest elections and win seats in Lok Sabha or assembly polls.

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He also questioned the central government’s decision to exempt political parties from paying income tax while depositing old 500 and 1,000 rupee notes.

He sought to link the Centre’s tax exemption decision to the meeting between Prime Minister Narendra Modi and Congress Vice President Rahul Gandhi yesterday, suggesting the announcement was outcome of the parleys between the two.

“Common people are being investigated if they deposit Rs 2.5 lakh individually. But if political parties are not going to be investigated even if they deposit Rs 2,500 crore following the decision, then it is wrong.

“We demand setting up of an independent commission to probe into bank accounts details of political parties over the past five years, to investigate into their sources of funding,” Kejriwal said at a press conference.

He also asked the Centre to make public details of money deposited by all political parties post-demonetisation and sought removal of the “less than Rs 20,000 donation cap” for tax exemption, saying “each paisa the parties receive should be declared”.

“The income tax returns filed by AAP right from its formation until now are being enquired into. We are presenting each of the receipts and vouchers to the income tax department. We are not scared, what other parties, BJP, are scared of? Why they too should not be probed?” he asked.

Kejriwal, a bitter critic of Modi, accused the latter of helping political parties — the “biggest hoarders of black money” — to convert it into “white” at a time when common people have been forced to queue up outside banks and ATMs to withdraw their hard-earned money.

“Ye desh ke sath dhokha hai (it is a big fraud played on the country),” Kejriwal said.

Stating it was “surprising” that the tax exemption decision came after Gandhi led a Congress delegation to meet Modi, Kejriwal demanded that the Congress Vice President make public details of Modi’s corruption as he claimed to have supporting documents.

“He is not sharing details of Modi’s corruption, is only talking about it… Then he meets the PM and seals a deal. I will insist Gandhi to make public the evidences and that he stops entering into deals with Modi. Or else, the country will not forgive him,” Kejriwal said.

Hitting out at the Prime Minister, Kejriwal alleged Modi’s intentions were “bad” right from the day he announced demonetisation on November 8.

Meanwhile, Kejriwal also denounced the decision to hike petrol and diesel prices, which he saw as a repercussion of demonetisation and sought its immediate reversal.

“We oppose the hike in fuel prices. This is direct result of demonetisation. The rupee has become weak in international market post-demonetisation, leading to hike in the fuel prices. This should be rolled back immediately,” he said.

To a question, the chief minister said the AAP is “not affected” by demonetisation.

He reiterated demonetisation is an “unconstitutional” move and likened it to dacoity by the Prime Minister on bank accounts of people as they are not being allowed to withdraw their hard-earned money.

Referring to a case pending before the Supreme Court with regard to demonetisation, Kejriwal hoped it takes cognisance of concerns and declares the move as “unconstitutional”.

(With inputs from PTI)

Courtesy: Janta Ka Reporter
 

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