H.C.Arora, a senior Advocate of the Punjab & Haryana High Court, filed a Public Interest Litigation before the Court seeking invalidation of s. 13A of the Income Tax Act and 29-C of the Representation of the Peoples Act, 1951 claiming that these provisions discriminates the parties and other tax payers. The Court will hear the matter on Monday.
As per s. 13A of the Act, the political parties can accept donations or contributions upto Rs. 20,000/= from any person, without requiring to maintain the accounts, or maintaining the names and addresses of such donors. In the litigation, it is stated that the section entitles the political parties to collect endless amount through such so called small donations upto Rs.20000/- from any person.
As per the Reports submitted by the Association for Democratic Reforms, funds of national Political parties comprise such donations upto 51% of their total fund collection during Financial Year 2014-2015. The political parties are extended benefit of exemption of this income from unaudited donations, also from payment of income tax.
Mr. Arora said that these provisions are against public policy inherent under the concept of free and fair elections. These provisions are otherwise also arbitrary and discriminatory vis a vis other tax payers, who have to give details of every penny of their investments for getting any tax exemptions, rebates or reliefs. Besides, these provisions protect black money deposited in the accounts of political parties.
