25 January 2017

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69% Income of Indian Political Parties is Black Money

69% Income of Indian Political Parties is Black Money

Analysis of Sources of Funding of National and Regional Parties of India FY 2004-05 to 2014-15 (11 years)

An analysis of their Income Tax returns and statements filed with the Election Commission of India (ECI) shows that the sources remain largely unknown. At present, political parties are not required to reveal the name of individuals or organizations giving less than Rs. 20,000. Thus, over two-thirds of the funds cannot be traced and are from ‘unknown’ sources. This becomes very relevant in the light of recent events when demonetization was announced so as to weed out black money from the society. While the National Political Parties were brought under the RTI Act by the CIC ruling in June 2013, they have still not complied with the decision. Full transparency is, unfortunately, not possible under the current laws, and it is only the RTI that can keep citizens informed.

Of the 51 regional political parties considered for this report, 45 parties have not submitted their donations statements to the ECI for at least one financial year.

The 12 regional parties which have never filed their contributions report since FY 2004-05 are: J&K PDP, AJSU, NPP, RSP, MPC, KC-M, SKM, AINRC, PDA, MSCP, HSPDP and PPA.

The income tax returns/ audit reports of National and Regional parties were obtained by filing RTI applications with the Income Tax departments. The income tax returns of 42 out of the 51 regional parties analyzed were unavailable for at least one financial year. The information was either denied by the IT departments/ the parties had not filed their returns for the financial year/ the departments were unable to trace the audit reports/ incomplete information was provided. Where possible, copies of audit reports were procured from the ECI.

The income of National Parties from unknown sources increased by 313%, from Rs 274.13 crore during FY 2004-05 to Rs 1130.92 crore during FY 2014-15.

The income of Regional Parties from unknown sources increased by 652% from Rs 37.393 crore during FY 2004-05 to Rs 281.01 crore during FY 2014-15.


Highlights
Income of Political Parties from Known and Unknown sources –
1-
The contribution statements, submitted by the political parties declaring names and other details of donors who contribute above Rs 20,000, are the only known sources of income of political parties.

2-
The unknown sources are income declared in the IT returns but without giving source of income for donations below Rs. 20,000. Such unknown sources include ‘sale of coupons’, ‘Aajiwan Sahayog Nidhi’, ‘relief fund’, ‘miscellaneous income’, ‘voluntary contributions’, ‘contribution from meetings/ morchas’ etc. The details of donors of such voluntary contributions are not available in the public domain.

3-
Other known sources of income include sale of moveable & immoveable assets, old newspapers, membership fees, delegate fee, bank interest, sale of publications and levy whose details would be available in the books of accounts maintained by political parties.

4-
6 National parties (INC, BJP, BSP, NCP, CPI and CPM) and 51 Regional recognized were considered for this analysis, including AITC which was declared a National Party only in September, 2016.

5-
Currently there are 48 Regional recognized parties: HJC-BL and MSCP merged with INC during FY 2014-15 and MPP was de-recognized in 2013.

6-
Total income of National and Regional political parties between FY 2004-05 and 2014-15: Rs 11,367.34 cr.

7-
Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission): Rs 1,835.63 crores which is 16% of the total income of the parties.
8-
Total income of political parties from other known sources (e.g., sale of assets, membership fees, bank interest, sale of publications, party levy etc.): Rs 1,698.73 crore or 15% of total income.

9-
Total income of political parties from unknown sources (income specified in the IT Returns whose sources are unknown): Rs 7,832.98 crores, which is 69% of the total income of the parties.

10-
Sources of income of National and Regional Political Parties between FY 2004-05 and 2014-15
A-
Political Parties - National Parties
Income from unknown sources - Rs 6,612.42 crore
Income from known sources - Rs 1405.19 crore
Income from other known sources - Rs 1260.69 crore
Total Income – Rs 9,278.30 crore

B-
Political Parties – Regional Parties
Income from unknown sources - Rs 1,220.56 crore
Income from known sources - Rs 430.44 crore
Income from other known sources - Rs 438.04 crore
Total Income – Rs 2,089.04 crore

Total Income National Parties Plus Regional Parties = Rs 11,367.34 crore

11-
Political Parties with maximum income from unknown sources
a-
 During the 11 years between FY 2004-05 and 2014-15, 83% of total income of INC, amounting to Rs 3,323.39 crore and 65% of total income of BJP, amounting to Rs 2,125.91 crore came from unknown sources.

b-Among the Regional Parties, Rs 766.27 crore or 94% of total income of SP and Rs 88.06 crore or 86% of the total income of SAD came from unknown sources.

12-
Among all the National and Regional parties considered, BSP is the only party to consistently declare receiving NIL donations above Rs 20,000 between FY 2004-05 and 2014-15 thus 100% of the party’s donations came from unknown sources. The total income of the party increased by 2057% from Rs 5.19 crore during FY 2004-05 to Rs 111.96 crore during FY 2014-15.

13-
The six National Parties of India considered for this report are Bharatiya Janata Party (BJP), Indian National Congress (INC), Bahujan Samaj Party (BSP), Nationalist Congress Party (NCP), Communist Party of India (CPI) and Communist Party of India (Marxist) (CPM).
INC has the highest total income of Rs 3,982.09 crores between FY 2004-05 and 2014-15, this is 42.92% of the total income of the 6 parties during the same time.
BJP has the second highest income of Rs 3,272.63 crores which is 35.27% of the total income of the 6 National parties.
CPM declared third highest Income of Rs 892.99 crores which is 9.62% of the total income of the 6 National parties
BSP declared income of Rs. 763.95 crores
NCP declared income of Rs. 351.28 crores.
CPI declared income of Rs. 15.36 crores

14-
The total declared income of Regional Parties between FY 2004-05 and 2014-15 was Rs 2,089.04 crores.
SP has the highest total income of Rs 819.1 crores between FY 2004-05 and 2014-15 followed by DMK with Rs 203.02 crores and AIADMK with Rs 165.01 crores

15-
The total amount of donations received above Rs 20,000 by Political Parties, between FY 2004-05 and 2014-15, is calculated from the donations report submitted to the Election Commission, annually.
a-
The total amount of donations above Rs 20,000 declared by the 6 National Parties was Rs.1405.19 crores.

b-
BJP tops the list and has declared a total of Rs 917.86 crores as received via voluntary contributions above Rs 20,000. The donations declared by BJP is more than twice the donations declared by the INC during the same period.

c-INC declared donations of Rs 400.32 crore received between FY 2004-05 and FY 2014-15.

d-BSP declared that the party did not receive any donations above Rs 20,000 in the past 11 Financial Years.

e-NCP has not submitted its donations report to the ECI between FY 2004-05 and 2006-07.

16-
Total income of the Regional Parties from Known Sources (FY 2004-05 to 2014-15)
The total amount of donations above Rs 20,000 declared by the Regional Parties was Rs.430.42 crores.

DMK tops the list and has declared a total of Rs 129.83 crores as received via voluntary contributions above Rs 20,000 but the party has not filed its donations report for FY 2004-05 and 2005-06.

Shiv Sena declared the second highest donations of Rs 49.07 crores received between FY 2004-05 and FY 2014-15 while AAP has declared the third highest donations above Rs 20,000 amounting to Rs 45.46 crores

BJD, with total donations of Rs 40.62 crores (above Rs 20,000) has not filed its donations report for the period between FY 2004-05 and 2008-09 and has declared NIL donations above Rs 20,000 between FY 2010-11 and 2012-13

Unknown Source of Money Income  means Black Money
Below is the List of nations where it is compulsory for the Political Party to reveal the name of the fund donor.
Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan

It should be compulsory for all political parties to receive donation only using banking system, online transactions and Mobile Applications.

Government needs to pass the law which will clearly say that any political party which receive funds in cash then it may be Rs. 1 or Rs. 1000 Crore from March 2017 will get banned automatically for 50 years
After Bank Note Ban and as per new policy of BJP government Indian citizens are encouraged to go cashless then why political parties want to accept donations in cash and not ready to reveal the name of donor.

Can BJP government dare to make a law which will make it illegal for a political party to accept funds in cash for whatever may be the reason.

Political Parties should come under RTI.

CAG should check the accounts of each Political Party each month.

Political Parties should reveal all the details of received income on their websites.

Remember Unknown Source of Income means it is black money, it can come from any corrupt man or terrorist organization or from Pakistan or from anyone.

What will happen if you fail to explain to the Income Tax officer from where you got Rs. 3 Lakh or 1 Crore which you deposited in bank after Note Ban, Note Exchange Program

Reality views by sm –

Wednesday, January 25, 2017

Tags – India Political Parties Black Money Donation