Govt plans tax exemption threshold for political parties

This is to check money laundering by outfits which do not contest elections

On the Election Commission’s recommendations, the government is planning to set threshold criteria for political parties enjoying tax exemptions in order to check money laundering by outfits which do not contest elections.

Election Commission recommended to the government to amend laws to bar tax exemption to parties which do not contest elections and win seats in Lok Sabha and Assembly polls and to ban anonymous donations above Rs 2,000 to political parties.

Jaitley underlined the need for making political funding as transparent as possible, saying donations must be smaller in size but huge in number.