It refers to smart beginning towards checking use of dirty money in contribution made to political parties when Union Finance Minister in the Union Budget for the fiscal-year 2017-18 restricted maximum cash contribution by an individual to a political party at rupees 2000. But it is not clear if contributions between rupees 2000 and 20000 will be made public or not.
But Union Finance Minister has wrongfully ignored important recommendation of Election Commission for not allowing Income Tax exemptions for contributions made to or received by non-serious mushrooming political parties now totalling about 2000 out of which just about 20-percent have contested last held elections to Lok Sabha in the year 2014. It is evident that such non election-contesting political parties get registered only to whiten dirty black money because of exemptions available under sections 80GGB and 80GGC of Income Tax Act. Since our political parties are ultra-rich to afford payment of Income Tax on contributions received by them, central government should come with an amendment to abolish tax-exemptions under sections 80GGB and 80GGC of Income Tax Act. After all, revenue so earned will be for national development and public welfare which is rather more important.
SUBHASH CHANDRA AGRAWAL