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New bill to allow companies to donate to political parties
Companies, other than those owned by the government, would be eligible to make donations to political parties under the proposed bill on state funding of elections.
Companies, other than those owned by the government, would be eligible to make donations to political parties under the proposed bill on state funding of elections.
The Elections and Other Related Laws (amendment) Bill 2001, approved by the Union Cabinet on December 18, was aimed at eliminating the influence of money power and black money support in elections to Parliament and state assemblies.
The representation of the People Act 1951 might be suitably amended to allow companies, subject to the Companies Act, to make donations to political parties, an official release said narrating the salient features of the proposed bill.
Similar donations could be made by the individuals and other juridical persons but no donation would be received from foreign source as defined in the Foreign Contribution Regulation Act 1976, it said.
The public sector undertakings and other like bodies which are funded by government wholly or partly including local bodies would also not be eligible for donation. Under the Companies Act, a company may donate, in any financial year, any amount not exceeding Rs 50,000 or 5 % of its average net profits during the three financial years immediately preceding.
The limit of income of a political party from voluntary contributions in cash may be raised from Rs 10,000 to Rs 20,000 under the Income Tax Act, the release said. Bureau Report
The representation of the People Act 1951 might be suitably amended to allow companies, subject to the Companies Act, to make donations to political parties, an official release said narrating the salient features of the proposed bill.
Similar donations could be made by the individuals and other juridical persons but no donation would be received from foreign source as defined in the Foreign Contribution Regulation Act 1976, it said.
The public sector undertakings and other like bodies which are funded by government wholly or partly including local bodies would also not be eligible for donation. Under the Companies Act, a company may donate, in any financial year, any amount not exceeding Rs 50,000 or 5 % of its average net profits during the three financial years immediately preceding.
The limit of income of a political party from voluntary contributions in cash may be raised from Rs 10,000 to Rs 20,000 under the Income Tax Act, the release said. Bureau Report