As the country moves slowly but steadily along the path of democratic dispensation, we gain experience of new situations arising from time to time and new questions posed regarding how best democratic tradition can be improved and strengthened. Five-yearly elections to the Parliament and the State Assemblies are major events. It is an expensive affair but the country has adopted it because of its suitability to the structural needs of our society. Nothing is static in politics and in administration. A state has to move forward in accordance with the democratic parameters set forth by the Constitution. The Constitution itself is subject to amendments and improvements by the members of the Parliament meaning those in power and those out of power. Likewise, the Election Reforms, too, have to be brought about as new experiences get accumulated,
Electoral reforms can be suggested by the Chief Election Commission to the Government and then it is the Parliament that has to decide whether the suggested reforms should or should not be accepted. The EC will make suggestions on the basis of the ground situation and also on the basis of his firm conviction that suggested reforms would undoubtedly strengthen democratic process and institutions in the country. In the past, a number of reforms have been brought to force in regard to elections and the results are satisfactory. For example, as we hold elections to the Parliament after every five years, we have, to a large extent, been able to control corruption and mismanagement of election duty for which lakhs of employees are deployed.
The Chief Election Commission of India has recommended several far-reaching reforms in the election process in the country. However, till date there has not been proper accountability for the political parties on collecting funds and disbursing the same as the organizers of these parties desired to do. The more interesting thing is that donations of any denomination made to the political parties without disclosing the names of the donors went to the coffers of political parties without any obstruction at any level. The EC has suggested that no donation beyond two thousand rupees to any political party be allowed to go exempted by the Income Tax Department. Election Commission has recommended that the Government amend laws to allow exemption from tax only to parties that win seats in elections and ban anonymous contributions of Rs 2000 and above to parties.
Section 13A of the Income-tax Act, 1961 confers tax exemption to political parties for income from house property, income by way of voluntary contributions, income from capital gains and income from other sources.
Only income under the head ‘salaries and income from business or profession’ are chargeable to tax in the hands of political parties in India.
The reforms suggested by the EC are timely and conducive to honest and corruption free elections. We often hear that our elections are controlled by money power. The suggested reforms should be approved by the Parliament and the cabinet so that our fight against black money becomes meaningful.