Individuals cannot donate more than INR 2000 to political parties: Budget 2017
Q. In order to limit lack of transaparency in electoral funding, one person will now be allowed to donate more than how much?- Published on 03 Feb 17a. INR 4000
b. INR 3000
c. INR 2000
d. INR 1000
ANSWER: INR 2000
Union budget presented by finance minister Arun Jaitley launched a lot of measures including political funding reforms.
The budget capped anonymous cash donations to political parties at INR 2,000.
This is one-tenth the current level, in accordance with a recommendation by the EC.
Jaitley’s speech mentioned a proposal by the Reserve Bank of India (RBI) to allow parties to issue electoral bonds to raise money.
The FM also announced an INR 3 lakh cap on cash transactions. It is also proposing a law to confiscate properties of offenders, including those suspected of economic crimes, who flee the country.
Modi government's agenda for the next year is ‘Transform, Energise and Clean India,’ that is, TEC India, to rid the country of “the evils of corruption, black money and non-transparent political funding”.
The EC has suggested a reduced cap of INR 2,000 and an additional amendment has been proposed to the RBI Act to enable issuance of electoral bonds.
Under this scheme, a political donor can purchase bonds from authorization given banks. However, those securities can be redeemed only via registered accounts of a political party in a prescribed time.
Political parties will be able to receive donations by cheque or digitally and will have to report them to the tax department in IT returns.
