After the much controversial clarification from the revenue secretary Hasmukh Adhia that the political parties would be exempted from income tax provisions while depositing scrapped currencies, the Election Commission is seeking a bar on the anonymous donations of over ₹2000 to the political parties in a bid to ensure that they don’t become channels for black money.
A draft amendment legislative proposal has been sent by the Election Commission, which is currently lying with the Ministry of Law. The EC has asked the government to ban anonymous contributions of ₹2000 and above made to political parties in the proposal.
Notably, the present law, the Representation of the People Act, 1951, does not stop the political parties from accepting nameless donations. However, according to the Section 29C of the RPA Act, it is mandatory to disclose details of donations above ₹20,000 for the political parties.
Now, in a note to the government, the EC has sought to make the law stricter by lowering the cap of an anonymous donation from ₹20,000 to ₹2,000.
Apart from that, the EC also sought that the exemption of income tax should only be extended to those political parties that contest elections and win seats in Lok Sabha or Assembly polls.
According to EC, out of 1900 registered political parties, only 400 contested polls between 2005 and 2015.