Tax Donations to Political Parties
ASSOCHAM says that 75% of the donation received by the political parties are falling in the category of voluntary contribution not in excess of Rs.20,000/- with the result that there is no trail of the name and address of the person who has made such contribution. The normal perception is that these contributions have come out of the money which has not been subjected to tax.
ASSOCHAM is right. No poor Indian will make a donation to a political party. All the cash donations received by political parties are black and obviously untaxed. And they come from people who should have paid the tax. So, when they don't pay, why not collect it from the recipients, the political parties?
ASSOCHAM suggest that each political party shall be required to pay tax at the rate of 30% in respect of the anonymous donation received by it.
Good suggestions;but who is going to accept this? Even in the unlikely event of the Finance Minister proposing such a move, it is sure to be shot down unanimously by all the parties.