Political parties exempt from tax on deposits
New Delhi: Political parties depositing the demonetised Rs 500 and Rs 1000 notes in their accounts will not face any income tax investigation said the Finance Ministry on Saturday.
“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,” said revenue secretary Hasmukh Adhia.
Black money plays a vital role in elections and political parties attribute disproportionate parts of their funds to donations from volunteers, which elections commission officials and others have repeatedly highlighted.
The government has said that tax evaders have until the end of March 2017 to come clean under a scheme Income Disclosure Scheme (IDS), the Pradhan Mantri Garib Kalyan Yojana(PMGKY).