A single donation of above Rs 20,000 as per the existing law has to be done through cheque or bank draft, he said.
Besides, farmers who are exempted from paying tax on agriculture income will need to furnish a self-declaration that their earnings are less than Rs 2.5 lakh in a year to make bank deposits without PAN.
For those unable to do that, furnishing PAN will be required, Adhia said.
He said deposits in bank accounts of political parties are not to be taxed.
“If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual’s account then that information will come into our radar. If the individual is putting money in his own account, then we will get information,” he told reporters here.
Section 13A of the Income Tax Act, 1961 grants exemption from tax to political parties in respect of their income. This income could be from house property, other sources, capital gains and income by way of voluntary contributions received from any person.
