The Hindu Business Line
Ban anonymous donations above ₹2,000 to parties: EC
Seeking to arrest the flow of black money into the electoral process, the Election Commission has urged the Centre to ban anonymous contributions of ₹2,000 and above made to political parties.
Currently, there exists no constitutional or statutory prohibition on parties receiving anonymous donations. However, there is an “indirect partial ban”, with contributions above ₹20,000 requiring a declaration in accordance with the Representation of the People Act, 1951.
The proposed amendment is part of the Commission’s compendium on proposed electoral reforms, which has been sent to the government.
On Saturday, the government had said that political parties depositing old ₹500 and ₹1,000 notes in their accounts will be exempt from income tax, provided donations taken are below ₹20,000 per individual, and are properly documented.
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. .