Election Commission appeals government: Annonymous donation above RS 20,000 should be banned

Posted on by Saurav Khanduri

Election Commission appeals government: To curb the use of black money in the elections, the Election Commission of India (ECI) has appealed the center government to amend the laws to make illegal the anonymous contribution of Rs 2,000 and above made to accounts of political parties.

 ECI said there is no constitutional prohibition on the receipt of anonymous donation by the political parties. But, Government can be imposed an indirect partial ban on the anonymous donation via requirement of the declaration of donation under the Section 29C of The Representation of the people Act, 1951.

Election Commission appeals government:  Annonymous donation above 20,000 should be banned

Election Commission appeals government: Donation should be verified with evidence

It said such declarations are only mandated for the contribution of more than Rs 20,000. The Election commission has been sent a proposal of an amendment in the law of anonymous contribution by the donator to  the government, saying “anonymous contributions above or equal to the amount of Rupees two thousand should be prohibited.”

The government on Saturday had said that the political parties are exempted from scrutiny in connection with the deposit of old currency notes of Rs 500 and Rs 1,000. But the condition which they will have to follow is that the donation would receive by the parties should be below Rs 20,000 and are properly verified with evidence like the receipt.

Election Commission appeals government:  Annonymous donation above 20,000 should be banned

Political Parties are free to deposit banned notes

Hasmukh Adhia, Revenue Secretary said that the government is not tinkering with the tax exemption provided to the political parties and they are free to deposit Rs 500 and RS 1,000 notes of old currency notes under the condition that the individual donation received in cash should not be more than Rs 20,000 and are properly documented with donor’s identity.

The election commission has also proposed that exclusion 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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