11 September 2011

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Indian Political Parties Collect Crores of Rupees in funds without providing contributors list names.

Indian Political Parties Collect Crores of Rupees in funds without providing contributors list names.

Association for Democratic Reforms (ADR) obtained copies of the Income Tax Returns and Financial Orders of various political parties through the filing of RTI applications.

 This was made possible as per the Central Information Commission’s order number CIC/AT/A/2007/01029 & 1263-1270, according to which public authorities (Income Tax Departments) holding Income Tax returns of political parties are directed to make these
returns available to an appellant.

Political parties, under section 13A of Income Tax Act, get tax exemption on all voluntary contributions above Rs. 20,000

Executive Summary for Financial Years 2007-08 and 2008-09 –
Among the parties analyzed, Maximum contributions/donations have been reported by BJP ( 297 crores) followed by BSP ( 202 crores) and INC ( 72 crores), as part of their income.

BSP declared that it did not receive a single voluntary contribution in excess of 20,000 although the total contributions received by BSP exceed 202 crores for both the FYs.

CPI and INC have reported 56% and 50% respectively of their donations/contributions in sums greater than Rs. 20,000.

CPM and SP declared that it received only 2% and 1% each of the total contributions/donations in sums greater than Rs. 20,000 i.e. around Rs. 1 crore out of Rs.55 crores and Rs. 51 lakhs out of Rs. 46 crores.

According to income tax returns of political parties , political business house parties collect their major part of funds from unidentified donors.

Donor list , Fund giving parties list and tax returns filed by the
Congress, BJP, NCP and BSP for the past five years show they have not
Identified those who account for most of their funding.

Political Business House Party Name – Congress

In 5 years till 2008-2009 Congress party collected minimum
Rs 978 crore through sale of coupons for this Congress has not provided any
Contributors' list to authorities.

In this same period contributions collected with donor name list is just
Rs 85 crore.

Collection from unknown people – Rs. 978 crore
Collection from known people – Rs.85 Crore only

Do you think Rs.978 Crore is a black money?

Political Business House Party Name - BJP

Period - five years between 2005 and 2009

BJP collected Rs. 3o crore through sale of its Ajivan Sahyog Nidhi

BJP received or got Rs. 95 Crore from identified donors.

Now do you think Rs.30 Crore is black money?

Political Business House Party Name – BSP

2007 – 2009 - BSP collected Rs. 200 Crore in cash in just period of 2 years.
BSP did not declare who are the contributors it says that all the donations are below Rs.20,000
BSP says that all the donations are made by poor who support the party.

The Representation of People Act states that political parties are required to submit details of contributions received in excess of Rs 20,000 from any person or a company.

India needs to fix this loophole and should make it mandatory to receive payments and contributions only through cheque and not in cash with affidavit that he is paying donation without any force and fear of law being used against him.

Don’t you think that if someone wants to pay black money and do not want to disclose his name then what he will do?

He will donate every time below Rs.20,000 or he will get the coupon booklet of Rs. 1 Crore and will tell his manager that contribute below Rs.20,000 and pay Rs. 1 Crore.

Association for Democratic Reforms (ADR)
Anil Bairwal, coordinator of ADR told that ADR has written to the Central Board of Direct Taxes demanding a probe into the large cash donations received by political parties. "There is a dire need for a thorough investigation and scrutiny of the source and flow of such donations to curb the flow of black money into the coffers of political parties,"

(ADR) has demanded a thorough probe into parties receiving undisclosed contributions which constitute up to 90% of their total funds collected in any particular year.

Reality views by sm –
Sunday, September 11, 2011

Inputs from ADR, TOI

Tags- News Political Parties Fund Collection Congress BSP BJP


AKS September 12, 2011  

This is a issue why political parties are objecting the Janlokpal bill. I agree that this loophole needs to be plugged. It is time to fix the law and all donations to political parties should be through cheque payment only.
I hope it happens in my lifetime.

john gray July 13, 2012  

Can all the money can come back to India.If this all black money will come back all the problem of Indian Citizen will go away.
fight against corruption.