For deposit of 500 and Rs 1,000 notes to the bank, the political parties will not have any tax. Political parties are excluded from the Income Tax Act.
Finance Secretary Ashok Lavasa said this last day on Friday, Dec 16. Revenue Secretary Hasmukh Adhia even said, the political parties cannot be taxed on money deposited in bank accounts. However if the money is deposited in the individuals personal account, then we will be knowing this and appropriate action will be taken.
The Income Tax Act 1961, Section 13A, exempts the political parties from tax on their income, said Hasmukh Adhia.
On the issue of farmers he said. PAN card is mandatory only if there income is more than 2 lakh 50 thousand and the farmers has to declare this using form 60.
The Finance Ministry said that the limit of cash withdrawal from bank accounts after Demonetisation will be reviewed after December 30, on The last date of 500 and 1000.
Current Bank Rule of Money withdrawal
On withdrawals from bank accounts the government has fixed a limit of Rs 24,000 per month.
One can withdraw every day, Rs 2500 from ATM’s
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