General Knowledge-Current Affairs-Election Commission issues new guidelines on party funds

Election Commission issues new guidelines on party funds

The Election Commission has released a set of new guidelines, making it virtually mandatory for political parties to deposit their funds in banks and not to exceed ceiling limits in financial assistance for candidates.

Under the guidelines, the treasurer of a political party is now required to ensure maintenance of accounts at all state and lower levels and consolidated accounts at the central party headquarters.

The annual accounts shall be audited and certified by certified chartered accountants as required under the Income Tax Act. 

Under the guidelines, a party should ensure that no payment in excess of Rs. 20,000 is made to any person or company in cash, except in a village or in town, not served by a bank.

The order of the Election Commission, which came into force on Wednesday, was issued on August 29 under Article 324 of the Constitution (superintendence, direction and control of elections) as part of a set of comprehensive guidelines on transparency and accountability in party funds and election expenditure.