Make disclosure of donations worth over Rs 2,000 mandatory: Election Commission writes to govt | India News

NEW DELHI: Election Commission has written to the code recommending mandatory disclosure of all donations received by political parties in excess of Rs 2,000, instead of the current threshold of Rs 20,000, in addition to finding a cash limit donations to a party at 20% of the total contribution received by the organization or Rs 20 crore, whichever is less.
Chief Election Commissioner Rajiv Kumarseeks to continue the EC’s continued action against allegations of improper financing by registered unrecognized political parties (RUPP), recently wrote to the law minister Kiren Rijiju encourage amendments to electoral laws and rules that require all parties – including recognized national and state parties – to maintain a greater degree of transparency in their funding and limit the use of ‘black money’ in elections. The proposed upper limit on cash contributions – 20% of total party contributions or Rs 20, whichever is less – is a step in this direction, one source said.
Currently, there exists an anomaly between the Income Tax Act and the Representation of the People Act, 1951 regarding the upper limit on anonymous cash donations. While Section 13A of the Income Tax Act, which was amended in 2017, stipulates that a political party cannot receive cash contributions in excess of Rs 2,000, Section 29C of the RP Act requires parties Politics only declares details of contributions by check or any other bank route exceeding Rs 20,000. This basically means that the parties do not need to declare the contributions received by check / draft / electronic clearance ranging from Rs 2,000 to 20,000. “The EC sought to remedy this anomaly by amending Section 29C of the RP Act,” a source said.
Another key reform proposed by the EC is to give legal support to its guidelines requiring candidates to maintain a separate bank account for election expenses, by amending Rule 89 on the Conduct of the Electoral Code, 1961. It wants that digital transactions or wire transfers by payee’s account be made mandatory for all costs above Rs 2,000 for a single application. taste / person.
The EC has also sought reforms to ensure that donations from abroad do not reach political parties through the back door, in violation of Law on foreign contributions, 2010. Sources said that currently, there is no mechanism in place to segregate foreign grants at an early stage, and the current contribution reporting format is “unequipped” for information retrieval. additional. There are also concerns about violating foreign exchange terms.

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