Congress wants trusts to fully account for funds

The ruling party is, however, cagey about targeting religious trusts.

The Congress wants the government to ensure that charitable trusts submit proper accounts of their sources of funds.

The issue was raised by AICC General Secretary and Rajya Sabha MP V Narayansami at pre-Budget discussions with Finance Minister P Chidambaram a week ago. It will be taken up again when the finance minister comes to the Congress headquarters for similar discussions with party office-bearers next month, according to Congress sources.

"There are many private trusts which are used to camouflage black money, say, in the form of capitation fee in educational institutions. We are going to ask the finance minister to do something about it. Such trusts should be made to submit proper accounts," a Congress Working Committee member said, adding, "Such trusts should not be given unnecessary tax exemptions."

The ruling party is, however, cagey about any demand for taxing religious trusts. In the last Budget, the finance minister had proposed to tax donations to wholly charitable institutions at a higher marginal rate. Donations to partly religious and partly charitable institutions were proposed to be taxed if the money was specifically for educational or medical purposes.

The Congress also has reservations about disinvestment of profit-making public sector undertakings. The finance minister is keen to initiate discussions with the Left allies to soften their opposition.

The party had earlier opposed disinvestment of NALCO. The prime minister had put all disinvestment proposals on hold following DMK's threat to withdraw support over disinvestment in Neyveli Lignite Corporation,

Chidambaram recently proposed resumption of discussions to CPI(M) Politburo member Sitaram Yechury. The issue is now likely to come up at the next UPA-Left Coordination Committee meeting some time next month, say Left sources.

"Our national common minimum programme says that disinvestment in PSUs should be avoided. We, unlike the Left parties, are not for blanket opposition to disinvestment. But the government has to be judicious in the case of profit-making companies. We would suggest offering of shares to workers in such companies if disinvestment cannot be avoided," said a senior Congress leader.