Source: News Bharati English02 Feb 2017 20:38:24
New Delhi, February 02: Immediately after Finance Minister Arun Jaitley announced that Political Parties can only accept Rs 2000 as cash donations, today Revenue Secretary Hasmukh Adhia said that political parties have to file audited returns by December every year or risk losing tax exemptions.
Adhia said donations to political parties via electoral bonds will be confidential and donor's identity will not to be disclosed. He said, Finance Bill will amend Representation of People Act to keep identity of donors using electoral bonds confidential.
In an interview to PTI, Revenue Secretary Hasmukh Adhia said, political parties under law enjoy exemption from payment of income tax, but half of them do not file income tax returns on time. These political parties will lose the exemption status if they do not file ITR by December-end. They will be given a notice and afterwards their exemption status will be cancelled. He said, strictest discipline will come through this effort.
Adhiya said, government will amend the Representation of Peoples Act to ensure secrecy of the electoral bond buyers. He said, banks eligible for issuing such bonds will soon be notified. Guidelines for the scheme shall be issued by this March, he said.