Black money: SIT for donations to colleges, charities through cheque

The SIT on black money has suggested measures to ensure donations by cheques to prevent black money generation in education sector, religious bodies and charities, and sought prosecution of those donating and accepting unaccounted money under anti-corruption law.

New Delhi: The SIT on black money has suggested measures to ensure donations by cheques to prevent black money generation in education sector, religious bodies and charities, and sought prosecution of those donating and accepting unaccounted money under anti-corruption law.

The Special Investigation Team (SIT), in its third report, suggested legislative changes to deal with practice of routing unaccounted money through donations.

It said persons accepting unaccounted money in form of donation or also donors "requires to be prosecuted under Prevention of Corruption Act".

For this, the panel said it would require legislative change which is necessary because now?a?days, donation to educational institutions which are in demand, is rampant.

"In some cases, it goes to Rs 1 crore and more. This would go long way in curbing the generation and circulation of black money," the report said.

SIT had raised the issue of large scale cash donations to "well?known schools and colleges" and to religious institutions and charities.

The panel was of the view that cash normally would be "unaccounted money...For controlling such transactions, there should be specific provision that donation shall not be accepted by cash and whosoever accept it, would be punishable under the Prevention of Corruption Act...".

On donation to various religious institutions or charities, SIT said nobody can object for charity donation.

"...But at the same time, that when large amount is donated, it should be only accounted money and that payment should be by account-payee cheque to the charity or the institution. Even if gift of jewellery is made to the charity or institution, it should be by mentioning donor's name and his PAN Number".

CBDT informed SIT on details of searches/surveys conducted by them in such cases.

In short, SIT said substance of the findings of searches/ surveys of various entities engaged in area of education through the Trust reveals that large unaccounted amount is accepted as donation and "in a number of cases, such donations are used for personal benefits and also for tax evasion which results into generation of black money".

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