Govt exempts Political Parties Depositing Old Currency from Tax Scrutiny?
Our Correspondent
Even as long queues remained outside banks and ATMs following government’s Demonetisation move, there are media reports suggesting political parties are being exempted under the Income Tax act to deposit old currency notes of Rs. 500 and 1000 in their bank accounts.
Times Now quoting Finance Secretary Ashok Lavasa said: political parties are exempted under the Income Tax act to deposit old currency notes in their bank accounts.
Later, Lavasa clarified that anybody in India can deposit money till December 30.
Speaking to the media persons, Lavasa said public can deposit old notes in their respective bank accounts till December 30, 2016. After December, they can go to the Reserve Bank of India.
However Revenue secretary Hasmukh Adhia on Friday said: “If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual’s account then that information will come into our radar. If the individual is putting money in his own account, then we will get information,”
This income could be from house property, other sources, capital gains and income by way of voluntary contributions received from any person.
Currently, political parties are required to report only donations above 20,000 to Income Tax Department.
Political parties are exempted from filing income tax returns and contributions to political parties are deductible from assessee’s total income.