18 September 2007
I want to know that is there any control over political parties for their funds and the utilisation. Is Election Commission of India maintain such type of control. Is the control ( if any ) is also applicable on listed but not recognised political parties.
Any donation for more than 5000, names should be mentioned that who has given it and other details. Not by Election commision but by IT Act. I am not sure if any guideline is there for expense.
Also, Companies are not allowed to pay more than certain % of their profit to political outfits(check with Companies Act).
Election Commission has guidelines regarding expense to be incurred on Election campaign. Its another thing that no one follows it.
18 September 2007
The answer given by u is not related to my query. I know the controls of Income tax dept, but I want to know about the controls of Other depts like Election commission of India.
19 September 2007
Yes Mr Manish, There is code of conduct for the parties and they has to maintain proper record of all expenses incurred. Here is one of the law: 9. COMPULSORY MAINTENANCE OF ACCOUNTS BY POLITICAL PARTIES AND AUDIT THEREOF BY AGENCIES SPECIFIED BY THE ELECTION COMMISSION The Commission considers that the political parties have a responsibility to maintain proper accounts of their income and expenditure and get them audited by agencies specified by the Commission annually. While making this proposal in 1998, the Commission had mentioned that there was strong need for transparency in the matter of collection of funds by the political parties and also about the manner in which those funds are expended by them. Although in an amendment made last year, vide the Election and Other Related Laws (Amendment) Act, 2003, a provision has been made regarding preparation of a report of contributions received by political parties in excess of Rs.20,000/-, this is not sufficient for ensuring transparency and accountability in the financial management of political parties. Therefore, the political parties must be required to publish their accounts (at least abridged version) annually for information and scrutiny of the general public and all concerned, for which purpose the maintenance of such accounts and their auditing to ensure their accuracy is a pre-requisite. The Commission reiterates these proposals with the modification that the auditing may be done by any firm of auditors approved by the Comptroller and Auditor General. The audited accounts should be available for information of the public.
can u plz let me knwo that this law applies to all political parties whether they are recognised at national level, state level or even they are registered but un recognised.
CAclubindia
