Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
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        LATEST NEWS UPDATES | Political donations to get transparent    </title>
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-The Times of India

MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from..."/>
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MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from..." />
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    <h1 class="cat-box-title">Political donations to get transparent</h1>
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                            <div align="justify">-The Times of India<br /><br />MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from January 31, 2013.<br /><br />The 2009 Budget had introduced provisions relating to electoral trusts in the Income-tax Act. It provided for tax exemption to electoral trusts which distribute contributions to political parties, provided such trusts met the prescribed rules. The two notifications released on January 31, prescribe these rules. The first notification deals with the conditions for eligibility and approval of an electoral trust. The second notification deals with the conditions that are required to be met for the electoral trust to qualify for tax exemption in respect of the contributions received by it from various donors and distributed by it to political parties.<br /><br />A few corporate groups such as Tatas, Birlas and Bharti group have set up electoral trusts to ensure transparency. With notification of specific rules and with the national elections drawing near, many more corporate entities may follow suit. The electoral trust is required to be set up as &quot;a section 25 company&quot; (not for profit company) with the term &quot;electoral trust&quot; in its name. It also needs to obtain a PAN card. Its sole object should be to distribute contributions received by it to political parties and not pass on any direct or indirect benefit to its members or contributors, prescribe the notifications.<br /><br />For the electoral trust to avail of a tax exemption, various conditions have been prescribed such as from whom funds can be received, mode of receipt, utilization of funds, proper documentation and reporting. For instance, the electoral trust cannot receive funds from foreign citizens, foreign entities and other electoral trusts. Further, it can receive funds from Indian citizens, companies, other entities such as HUFs, firms etc, only if they hold a PAN card. An Indian citizen not resident in India, who does not have a PAN card, can contribute provided such person has an Indian passport. Funds cannot be received by the electoral trust in cash. Proper documentation of funds received is required, and receipts are to be given to all contributors.<br /><br />The administrative expenses of the electoral fund have been capped at up to 5% of the total contributions received in a year, subject to a cap of Rs 5 lakh in its first year of incorporation and Rs 3 lakh in the subsequent years. By March 31 of each year, the electoral trust is required to distribute 95% of the total contributions received in that year, together with the surplus brought forward from earlier years.<br /><br />The tax benefits for a company remain the same. A company can contribute either directly to a political party or to an electoral trust and claim exemption. For the electoral trust in turn to avail of the tax exemption, the electoral trust has to apply for approval to the Central Board of Direct Taxes, such approval will be valid for four years. In addition, it has to meet the conditions explained above.<br /><br />Every electoral trust is required to annually furnish a certified copy of the list of contributors and a list of political parties to whom sums were distributed. This information is to be furnished to the Commissioner of Income tax along with an audit report. &quot;The main advantage of setting up an electoral trust is that companies can delink the donations from their business operations. It would enable companies to deflect demands for donations from any one specific party, as the trust generally contributes across political parties based on specified parameters,&quot; states Sudhir Kapadia, national tax leader, Ernst and Young.<br /><br />&quot;Such parameters can be based on various criteria, such as the number of existing seats that a political party has in Parliament, at the national or state level, the performance of the political party in the past, et all,&quot; cites an advocate.</div>                                                           
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    <br><a href="http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms" class="re" target="_blank">The Times of India, 13 February, 2013, http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms</a><div class="clear"></div>
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MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from..."/>
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                            <div align="justify">-The Times of India<br /><br />MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from January 31, 2013.<br /><br />The 2009 Budget had introduced provisions relating to electoral trusts in the Income-tax Act. It provided for tax exemption to electoral trusts which distribute contributions to political parties, provided such trusts met the prescribed rules. The two notifications released on January 31, prescribe these rules. The first notification deals with the conditions for eligibility and approval of an electoral trust. The second notification deals with the conditions that are required to be met for the electoral trust to qualify for tax exemption in respect of the contributions received by it from various donors and distributed by it to political parties.<br /><br />A few corporate groups such as Tatas, Birlas and Bharti group have set up electoral trusts to ensure transparency. With notification of specific rules and with the national elections drawing near, many more corporate entities may follow suit. The electoral trust is required to be set up as &quot;a section 25 company&quot; (not for profit company) with the term &quot;electoral trust&quot; in its name. It also needs to obtain a PAN card. Its sole object should be to distribute contributions received by it to political parties and not pass on any direct or indirect benefit to its members or contributors, prescribe the notifications.<br /><br />For the electoral trust to avail of a tax exemption, various conditions have been prescribed such as from whom funds can be received, mode of receipt, utilization of funds, proper documentation and reporting. For instance, the electoral trust cannot receive funds from foreign citizens, foreign entities and other electoral trusts. Further, it can receive funds from Indian citizens, companies, other entities such as HUFs, firms etc, only if they hold a PAN card. An Indian citizen not resident in India, who does not have a PAN card, can contribute provided such person has an Indian passport. Funds cannot be received by the electoral trust in cash. Proper documentation of funds received is required, and receipts are to be given to all contributors.<br /><br />The administrative expenses of the electoral fund have been capped at up to 5% of the total contributions received in a year, subject to a cap of Rs 5 lakh in its first year of incorporation and Rs 3 lakh in the subsequent years. By March 31 of each year, the electoral trust is required to distribute 95% of the total contributions received in that year, together with the surplus brought forward from earlier years.<br /><br />The tax benefits for a company remain the same. A company can contribute either directly to a political party or to an electoral trust and claim exemption. For the electoral trust in turn to avail of the tax exemption, the electoral trust has to apply for approval to the Central Board of Direct Taxes, such approval will be valid for four years. In addition, it has to meet the conditions explained above.<br /><br />Every electoral trust is required to annually furnish a certified copy of the list of contributors and a list of political parties to whom sums were distributed. This information is to be furnished to the Commissioner of Income tax along with an audit report. &quot;The main advantage of setting up an electoral trust is that companies can delink the donations from their business operations. It would enable companies to deflect demands for donations from any one specific party, as the trust generally contributes across political parties based on specified parameters,&quot; states Sudhir Kapadia, national tax leader, Ernst and Young.<br /><br />&quot;Such parameters can be based on various criteria, such as the number of existing seats that a political party has in Parliament, at the national or state level, the performance of the political party in the past, et all,&quot; cites an advocate.</div>                                                           
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    <br><a href="http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms" class="re" target="_blank">The Times of India, 13 February, 2013, http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms</a><div class="clear"></div>
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    <h1 class="cat-box-title">Political donations to get transparent</h1>
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                            <div align="justify">-The Times of India<br /><br />MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from January 31, 2013.<br /><br />The 2009 Budget had introduced provisions relating to electoral trusts in the Income-tax Act. It provided for tax exemption to electoral trusts which distribute contributions to political parties, provided such trusts met the prescribed rules. The two notifications released on January 31, prescribe these rules. The first notification deals with the conditions for eligibility and approval of an electoral trust. The second notification deals with the conditions that are required to be met for the electoral trust to qualify for tax exemption in respect of the contributions received by it from various donors and distributed by it to political parties.<br /><br />A few corporate groups such as Tatas, Birlas and Bharti group have set up electoral trusts to ensure transparency. With notification of specific rules and with the national elections drawing near, many more corporate entities may follow suit. The electoral trust is required to be set up as &quot;a section 25 company&quot; (not for profit company) with the term &quot;electoral trust&quot; in its name. It also needs to obtain a PAN card. Its sole object should be to distribute contributions received by it to political parties and not pass on any direct or indirect benefit to its members or contributors, prescribe the notifications.<br /><br />For the electoral trust to avail of a tax exemption, various conditions have been prescribed such as from whom funds can be received, mode of receipt, utilization of funds, proper documentation and reporting. For instance, the electoral trust cannot receive funds from foreign citizens, foreign entities and other electoral trusts. Further, it can receive funds from Indian citizens, companies, other entities such as HUFs, firms etc, only if they hold a PAN card. An Indian citizen not resident in India, who does not have a PAN card, can contribute provided such person has an Indian passport. Funds cannot be received by the electoral trust in cash. Proper documentation of funds received is required, and receipts are to be given to all contributors.<br /><br />The administrative expenses of the electoral fund have been capped at up to 5% of the total contributions received in a year, subject to a cap of Rs 5 lakh in its first year of incorporation and Rs 3 lakh in the subsequent years. By March 31 of each year, the electoral trust is required to distribute 95% of the total contributions received in that year, together with the surplus brought forward from earlier years.<br /><br />The tax benefits for a company remain the same. A company can contribute either directly to a political party or to an electoral trust and claim exemption. For the electoral trust in turn to avail of the tax exemption, the electoral trust has to apply for approval to the Central Board of Direct Taxes, such approval will be valid for four years. In addition, it has to meet the conditions explained above.<br /><br />Every electoral trust is required to annually furnish a certified copy of the list of contributors and a list of political parties to whom sums were distributed. This information is to be furnished to the Commissioner of Income tax along with an audit report. &quot;The main advantage of setting up an electoral trust is that companies can delink the donations from their business operations. It would enable companies to deflect demands for donations from any one specific party, as the trust generally contributes across political parties based on specified parameters,&quot; states Sudhir Kapadia, national tax leader, Ernst and Young.<br /><br />&quot;Such parameters can be based on various criteria, such as the number of existing seats that a political party has in Parliament, at the national or state level, the performance of the political party in the past, et all,&quot; cites an advocate.</div>                                                           
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    <br><a href="http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms" class="re" target="_blank">The Times of India, 13 February, 2013, http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms</a><div class="clear"></div>
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Home हिन्दी

Political donations to get transparent

Published on Feb 13, 2013   Modified on Feb 13, 2013

-The Times of India MUMBAI: India Inc has had to wait for nearly three years for the government to roll out the rules relating to the functioning of electoral trusts. The rules have been recently notified and come into effect from January 31, 2013. The 2009 Budget had introduced provisions relating to electoral trusts in the Income-tax Act. It provided for tax exemption to electoral trusts which distribute contributions to political parties, provided such trusts met the prescribed rules. The two notifications released on January 31, prescribe these rules. The first notification deals with the conditions for eligibility and approval of an electoral trust. The second notification deals with the conditions that are required to be met for the electoral trust to qualify for tax exemption in respect of the contributions received by it from various donors and distributed by it to political parties. A few corporate groups such as Tatas, Birlas and Bharti group have set up electoral trusts to ensure transparency. With notification of specific rules and with the national elections drawing near, many more corporate entities may follow suit. The electoral trust is required to be set up as "a section 25 company" (not for profit company) with the term "electoral trust" in its name. It also needs to obtain a PAN card. Its sole object should be to distribute contributions received by it to political parties and not pass on any direct or indirect benefit to its members or contributors, prescribe the notifications. For the electoral trust to avail of a tax exemption, various conditions have been prescribed such as from whom funds can be received, mode of receipt, utilization of funds, proper documentation and reporting. For instance, the electoral trust cannot receive funds from foreign citizens, foreign entities and other electoral trusts. Further, it can receive funds from Indian citizens, companies, other entities such as HUFs, firms etc, only if they hold a PAN card. An Indian citizen not resident in India, who does not have a PAN card, can contribute provided such person has an Indian passport. Funds cannot be received by the electoral trust in cash. Proper documentation of funds received is required, and receipts are to be given to all contributors. The administrative expenses of the electoral fund have been capped at up to 5% of the total contributions received in a year, subject to a cap of Rs 5 lakh in its first year of incorporation and Rs 3 lakh in the subsequent years. By March 31 of each year, the electoral trust is required to distribute 95% of the total contributions received in that year, together with the surplus brought forward from earlier years. The tax benefits for a company remain the same. A company can contribute either directly to a political party or to an electoral trust and claim exemption. For the electoral trust in turn to avail of the tax exemption, the electoral trust has to apply for approval to the Central Board of Direct Taxes, such approval will be valid for four years. In addition, it has to meet the conditions explained above. Every electoral trust is required to annually furnish a certified copy of the list of contributors and a list of political parties to whom sums were distributed. This information is to be furnished to the Commissioner of Income tax along with an audit report. "The main advantage of setting up an electoral trust is that companies can delink the donations from their business operations. It would enable companies to deflect demands for donations from any one specific party, as the trust generally contributes across political parties based on specified parameters," states Sudhir Kapadia, national tax leader, Ernst and Young. "Such parameters can be based on various criteria, such as the number of existing seats that a political party has in Parliament, at the national or state level, the performance of the political party in the past, et all," cites an advocate.

The Times of India, 13 February, 2013, http://timesofindia.indiatimes.com/business/india-business/Political-donations-to-get-transparent/articleshow/18474999.cms

Tagged with: transparency Governance

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