EC sets 10,000 transaction bar on candidates

NEW DELHI: Candidates contesting the upcoming assembly polls in five states cannot incur election expenditure beyond Rs 10,000 through a cash transaction nor can they receive a donation or loan exceeding this amount in cash. Political parties too will now be required to make payments in excess of Rs 10,000 to a person or entity on a single day by account payee cheque, bank draft, RTGS/NEFT, etc, as against the Rs 20,000 cap set earlier.

The Election Commission, in instructions issued to state chief electoral officers and political parties on November 12, lowered the threshold for election expenditure or donation either by/to candidates or political parties to Rs 10,000 from Rs 20,000, in line with an amendment made to the Income Tax Act in 2017.

"The threshold of Rs 20,000 for incurring of election expenditure by crossed account payee cheque, bank draft or by RTGS/NEFT has been revisited by the Commission having regard to amendment made in Section 40A(3) of the Income Tax Act, 1961 with effect from 1st April, 2017. It has been decided that henceforth all election expenditure either by/to candidates or political parties exceeding Rs 10,000....shall be incurred by crossed account-payee cheque, or draft or by RTGS/NEFT..," said the poll panel letter.