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    IndiaGovt's U-turn on political donations; says parties can't accept old notes as...

    Govt’s U-turn on political donations; says parties can’t accept old notes as donation

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    Government's U-turn on political donations; says parties cannot accept old notes as donation

    Facing severe criticism for allowing political parties to accept donations in old currency notes, the government has now said that political donations don't have any additional relaxation after demonetisation.

    The government has clarified that post-demonetisation, no political parties can accept the discontinued currency notes of Rs 500 and Rs 1,000.

    The clarification came from the ministry. Earlier on Friday, Finance Secretary Ashok Lavasa had said that political parties were allowed under Income Tax Act to deposit discontinued currency notes in their bank accounts.

    This had led to vociferous opposition from several quarters including political parties like AAP and TMC.Delhi Chief Minister Arvind Kejriwal and West Bengal Chief Minister Mamata Banerjee targeted Prime Minister Narendra Modi saying his move benefited the BJP.

    GOVERNMENT CLARIFIES, ALSO BLAMES MEDIA

    As the Opposition's attack sharpened, the finance ministry clarified that “exemption from income tax given to only registered political parties subject to conditions mentioned in Section13A of IT Act.”

    The feeling within the government is that “a slanderous campaign with respect to political parties, donations and demonetisation is going on. As always media got it wrong, perhaps intentionally.”

    The ministry also said that the parties were required to maintain books of accounts and other documents for an examination by the relevant authorities.

    In respect of voluntary contribution in excess of Rs 20,000 a political party will have to maintain record of such contributions. The political party has to submit a report to Election Commission about donations received within prescribed time frame.

    An informed source in the government said, “Post-demonetisation, no political party can accept donations in 500 and 1000 rupee notes since they were rendered illegal tenders. Any party doing so would be in violation of law.”

    “Should the political parties deposit anything in excess of Rs 2.5 lakh in old currency post-November 8, they are as liable to be questioned by the Income Tax authorities as is anyone else. They enjoy no immunity whatsoever,” the source emphasized.

     

    Northlines
    Northlines
    The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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