Ahead of next year's budget, ASSOCHAM bats for imposition of penalty on political parties in case of non-filing of income tax returns

In a memorandum submitted to Revenue Secretary Shatikanta Das on Friday, Apex industry chamber, The Associated Chambers of Commerce and Industry of India (Assocham) has made a case for political parties to pay a tax of 30 per cent on all anonymous donations received by such outfits. 

 

ASSOCHAM has also suggested that political parties who do not file their income tax returns on time should be visited with penalties.

It is surprising to note that the income tax law has not prescribed any penalty for non-filing of income tax return by a political party, the chamber said. 

“There is a need to amend income tax law to provide penalty in case a political party fails to file the return of income in time”, the pre-budget memorandum said. 

On anonymous donations, Assocham said that facts available in the public domain showed that more than 75 percent of the donation received by the political parties fell in the category of voluntary contribution not in excess of Rs. 20,000. 

This meant no trail of the name and address of the person who had made such contributions, the chamber has said. 

Currently, the income tax law requires a political party to maintain records of only those voluntary contributions that are in excess of Rs. 20,000.