Since
the incorporation of Income tax Act, The political parties are exempt from
paying Income tax. However they are required to file their Income tax returns
to claim this benefit. Income Tax Act grants
exemption from tax to political parties for income from house property, income
from other sources, income from Capital gains and income by way of voluntary
contributions received by political parties from any person provided the political
party keeps and maintains record in respect of voluntary donation received in
excess of Rs 20,000 giving details of amount received, name and address of
person who has made the contribution.
With
the above heads being exempted, only income from salaries and income from
business or profession is left. The political parties were very smart while
preparing and passing the law. Since they are neither in employment nor in business,
hence only these two heads are kept out and rest is exempted.
The
common man works so hard for his income only to pay tax on same based on tax
slabs. The Current government should bring about
overhauling changes in Section 13 by removing all exemptions in the upcoming
budget in order to bring in more transparency among political parties.
Also
at the same time, for voluntary donations above Rs 20,000 should be brought
down to Rs 5,000 or even nil similar to practice followed in other NGOs. With
this every donation received will be fully accounted for and the unknown
sources will not be present. Going forward,
the election commission should put up the income and expenditure account as
well as balance sheet in its website for everyone to view.
In
media we see income tax raids in corporate, individuals but never for political
parties organisation. Isn’t that surprising?
Time has come that the Income Tax department works with full autonomy
and not with Government dik-tak. This hopefully will bring in better governance
among political parties. Parties must understand, Swachh campaign should begin
at home and not from outside. Giving
exemption to deposit old notes during demonetisation without being questioned
is not a good sign. They have to take
people along in the mission of clean Bharat and hence come under the taxation
network.
