Candidates appearing for Rajasthan assembly election may face legal troubles in future as election expenditure norms set by the Election Commission of India (ECI) contradicts the latest updatation of Income Tax department. A delegation of Congress leaders has spotted the change and submitted memorandum to the state election department which has decided to look into the matter.
The commission in its ‘Compendium of Instructions on Election Expenditure Monitoring’ has detailed the dos and don’ts pertaining to election expenditures that the candidates appearing for the polls can incur. In 247 pages of the compendium, the commission has stated that candidate shall have to make payments exceeding Rs 20,000 through account payee cheque/draft only. The commission has referred section 40A (3) of Income Tax Act, 1961 in order to regulate this for the candidates. It further adds, “If a party is incurring any expenditure, it shall ensure that no payment in excess of Rs 20,000 is made in a day to any person or company or entity in cash, except where (a) the payment is made in a village or town, which is not served by a bank; or (b) the payment is made to any employee or party functionary towards salary, pension or for reimbursement of his expenses.”
Strangely, the cash payment limit of Rs 20,000 is not in sync with the cash limit imposed by the Income Tax department. The department has reduced the limit of cash through a notification dated April 4, 2017 and kept it between Rs 10,000 and Rs 20,000. With the latest notification, the candidates are in the state of confusion whether they should file the expenditure details accordingly to the election body or the income tax department. Their major worry is that they may be in legal trouble for flouting both rules, which are contradictory to each other.
Vijay Garg, who heads the Rajasthan Pradesh Congress Committee Chartered Cell (CA), has detected the contradictory provision and intimated to the chief electoral office (CEO) Anand Kumar about the same. When contacted the CEO Kumar assured that the department has taken cognizance of the issue and it is being examined by the ECI to which it has been already forwarded.
ECI Should Come With A Corrigendum
“After the candidates file the expenditure details, the ECI forward it to the income tax department. Now as the income tax has set Rs 10,000 ceiling for cash payment, it would disallow payment exceeding the limit and add in the income of assesee. The ECI should come with a corrigendum and ratify income tax fresh cash limit,” said Vijay Garg.
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