Donations to political parties in excess to Rs 20k under scanner
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For each voluntary contribution in excess of 20 thousand rupees, the political parties will have to maintain their records.Besides this, accounts of each political party is required to be audited by Chartered Accountant and the party has also to submit a report to the Election Commission about the donations.
The Income Tax Department has dismissed reports in a section of media that there can not be any scrutiny of Income Tax return of the registered Political Parties in the context of deposits of old currency notes of 500 and 1000 rupees.
Spokesperson of the Central Board of Direct Taxes, Meenakshi Goswami said there are enough provisions in the Income Tax Act to scrutinize the accounts of the political parties.
She clarified that the exemption from Income Tax is only for registered political parties subject to certain conditions which include keeping and maintaining books of accounts and other documents to enable the tax authorities to deduce its income therefrom.