EC appeals govt to ban anonymous donations to parties over Rs 2k

New Delhi: The Election Commission, in wake of the upcoming assembly polls in various states, on Sunday suggested the Centre to prohibit anonymous contributions above or equal to Rs 2,000 to political parties.

The constitution has no prohibition on anonymous donations to political parties. There, however, is an 'indirect partial ban' on anonymous donations by requirement of declaration of donations under section 29C of The Representation of the People Act, 1951.

These declarations are only meant for contributions of more than Rs 20,000.

According to the EC's proposed amendment to the government, "anonymous contributions above or equal to the amount of Rs 2,000 should be prohibited."

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The Centre, on Saturday, exempted the political parties depositing the demonetised currency notes of Rs 500 and Rs 1,000 in their bank accounts from income tax, provided the donations taken are below Rs 20,000 per individual and properly documented.

Revenue Secretary Hasmukh Adhia said the government is not going to revoke its order of exemption to political parties and they will remain free to deposit old 500 and 1000 rupee notes in their bank accounts. He, however, added that the individual donations taken in cash must not exceed Rs 20,000 and have to be properly documented with full identity of the donor.

The Election Commission also proposed that Income Tax exemption should only be provided to those political parties that fight the elections and win seats in Lok Sabha or assembly polls.