You are here: Home » Economy & Policy » News
Business Standard

Do not donate over Rs 2,000 in cash to political parties: Income Tax dept

According to the scheme, no person should make a cash donation of over Rs 2000 to a political party

Political Funding In India

Press Trust of India  |  New Delhi 

Election donors

The Income Tax Department today cautioned people against indulging in illegal cash transactions including donating more than Rs 2000 to political parties.

In a bid to clean up election funding, the government early this year had notified 'electoral bonds' that can be bought from specified branches of the SBI and used to donate money to political parties.

According to the scheme, no person should make a cash donation of over Rs 2000 to a political party.

The tax department, in advertisements issued in leading dailies today, said a person should not "donate in excess of Rs 2000 in cash to a registered trust/political party."

This is the first public advisory that the department or its policy-making body-- the Central Board of Direct Taxes (CBDT) has issued vis-a-vis political donations.

It is understood that the clause has been added in the I-T public advisory in the backdrop of the government notifying the electoral bonds scheme.

The department also stipulated some more don'tsfor the public like: "do not accept cash of Rs 2 lakh or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.

"Do not receive or repay Rs 20,000 or more in cash for transfer of immovable property."

The I-T Department also added that one should not pay "more than Rs 10,000 in cash relating to expenditure of business or profession."

The taxman asked public to say "no to cash transactions" of all these kinds.

It added that contravention of these threshold cash limits "may result in levy of tax/penalty".

"Go cashless. Go clean," the advertisement underlined.

The department also urged the public to inform it about such violations or any instance of blackmoney or benami assets transaction to it over email ""\nblackmoneyinfo@incom or to the jurisdictional Principal Commissioner of the department.

The electoral bonds, which are being pitched as an alternative to cash donations made to political parties, will be available at specified branches of the State Bank of India (SBI) for 10 days each in months of January, April, July and October.

The bonds, which would be valid for 15 days, will not carry the donors name even though the purchaser would have to fulfil KYC norms at the bank.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 23 2018. 15:34 IST