Budget to ensure transparency in political funding: ICAI

Apex body of chartered accountants ICAI today said the stringent and bold measures proposed in the Union Budget would ensure transparency in electoral funding.

In the Budget, the government has proposed restricting permissible cash donation from any person to a political party at Rs 2,000, among other measures.

Steps would also be taken to enable issuance of electoral bonds which can be purchased by the donor from authorised banks against cheque and digital payments only.

"Considering that this is the first budget with impetus on transparency in electoral funding, it is hoped that the stringent and bold measures proposed this year would have the positive effect of ensuring transparency in electoral funding," Institute of Chartered Accountants of India (ICAI) President M Devaraja Reddy said in a statement.
 

Besides, he said issues relating to the requirement of specific provisions for computation of MAT in case of Ind AS compliant companies has been addressed in this Budget.

Ind AS (Indian Accounting Standards) are converged with International Financial Reporting Standards (IFRS).

"Since certain companies have already become Ind AS compliant from FY 2016-17, incorporation of requisite provisions in the Income-tax Act, 1961 was the need of the hour," Reddy said, adding that the institute would study the proposal in detail.

Institute of Company Secretaries of India (ICSI) President Shyam Agrawal said the Budget focuses on stimulating growth, providing relief to middle class, curbing black money, transparency in electoral funding and simplification of tax administration, among others.