New Delhi:To make polls transparent and fair, the Election Commission has accepted a report by the accounting regulator that calls for tough norms and radical changes in the way political parties prepare their accounts.
The Institute of Chartered Accountants of India (ICAI) has recommended that all political parties in the country must prepare financial statements and submit audited accounts “within six months of the end of a financial year to the Election Commission”. “The regulator has said political parties must compulsorily publish their accounts in news dailies — national parties should get it published in English newspapers while regional parties in vernacular languages”, ICAI President Amarjit Chopra told The Indian Express.
The accounting regulator has also suggested that while auditors of political parties should be appointed by the Comptroller and Auditor General of India, there should be a rotation of auditors at least after every three years to usher in transparency in statements. Chief Election Commissioner S Y Quraishi has already tasked the I-T department to formulate an action plan for monitoring illegal cash flow during the upcoming polls in Assam, West Bengal, Tamil Nadu, Kerala and Puducherry.
The accounting regulator has also recommended that while all books of accounts must be prepared by political parties on accrual basis — as and when transaction happens — the parties must prepare consolidated accounts incorporating the financials of branch offices in various talukas, districts and states.
Chopra said that currently, political parties are not governed by any legislation that mandates them to prepare financial statements except for the Income-Tax Act. Also, they don’t have any financial year or law for time limit within which they should file the statements. Under the I-T Act, these parties are exempt from paying taxes. However, for claiming exemption, the parties have to maintain proper books of accounts, showing details of donations more than Rs 20,000 and these accounts should be audited by chartered accountants.
