EC: Stop all anonymous donations over Rs 2,000

New Delhi: To prevent flow of blackmoney 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.

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.

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

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 Rs 2,000 should be prohibited.”

Only on December 17, the government had said that political parties depositing old Rs 500 and Rs 1,000 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 clarified that political parties cannot accept old Rs 500 and Rs 1,000 notes as donations as both these bills have ceased to be legal tenders.

“All reports on the alleged privilege to political parties are false & misleading. Political parties have not been granted any exemption or privilege, post demonetisation & introduction of Taxation Amendment Act, 2016,” Mr Adhia said in a series of tweets. “Post demonetisation, no political party can accept donations in Rs 500 and Rs 1,000 notes since they were rendered illegal tenders. If there is any discrepancy, political parties are as liable to be questioned by IT authorities as is anyone else. They enjoy no immunity,”