NEW DELHI: The parliamentary standing committee on law and personnel is examining the limit of cash donations of Rs 2,000 to political parties set by the government and has sent a questionnaire to all national and regional parties seeking their views whether the limit is in tune with market conditions.The panel has also asked parties to give their opinion whether the provision of electoral bonds as proposed by the government will safeguard the privacy of donors. The EC had earlier told the panel that the introduction of electoral bond by the government would compromise transparency in political funding and termed it a "retrograde step". "The amendment in Section 29C of the Representation of the People Act, 1951, making it no longer necessary to report details of donations received through electoral bonds is aretrograde step as transparency of political funding would be compromised," it had said.In its attempt to discourage cash donations and bring transparency in funding to political parties, the government had amended the provisions of the Income Tax Act to stop individual cash donation above Rs 2,000 for the parties to avail tax exemption. The step was taken on the recommendation of the EC which had long been seeking a cap on cash donations.

Source: Times of India August 22, 2017 00:11 UTC