- Category: Miscellaneous
- #586176Please understand that the present government under Modi has not done anything new about exempting Income Tax for political parties.
The Income Tax act already provides exemption for donation received by political parties(subject to provisions of some other Acts also). It means that the political parties need not pay Income Tax for their income received by donations if they file the Income Tax return duly and properly as per the Act provisions related to them.
The government official only reiterated this in some context. It is another way of message to political parties also to deposit their holdings of withdrawn currency within stipulated time and come clean without any fear. The rider there was that even though not needed to be disclose, they should keep the records of the sources names with them.
The one indirect benefit is that it has given opportunity foe people to debate the necessity of subjecting political parties also to Income Tax. I am happy that at least as lip service, Kejriwal and Mamata Banerjee sounded that.
( I do not think that much amount will be deposited now by political parties, because that will give a clue f how much they were holding. No party will risk that in these days of RTI facility)
- #586181The current news about tax exemption to political parties on deposit of old 500 and 1000 notes will be exempt brought a doubt in my mind about double standards by the Government. As rightly pointed by Mr. Venkiteshwaran that donations to political parties are exempt or not taxable but any deposit to the fund of political parties post demonetisation shall not be unless proved otherwise.
My doubt was cleared when I read statement of our Finance minister Mr. Arun Jaitley that political parties will also be seen with same lens and no undue benefit will be given to them for deposit of demonitised currency. In the morning I thought that ordinaey people of India have been cheated with this exemption but by evening this doubt is cleared.
Hope that best will happen with this step taken against black money.
When you start believing in yourself, people also start to believe you.
- #586185Do you remember the Congress leaders had the meeting before the last day of the winter session of the Parliament and there this request has been put. Now after this announcement the resentment voice from Rahul and other Congress leaders has been subsidized as they were largely worrying about huge donations Congress has since many years and that has to be accounted for. That means Congress got a huge support from PM Modi by having a waive of tax on political parties donation declaration and this is the glaring mistake Modi has to succumb otherwise Rahul was about to make some starling revelations against the PM.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease