Finance Minister Arun Jaitley has said that political parties cannot accept donations in old 500 and 1,000 rupee notes since these bills have been demonetised. <br/><br/>In a statement, Mr Jaitley said, the government has not granted any new exemption to registered political parties either after 8th November demonetisation or in the last two-and-a-half years. <br/><br/>He said, conditional tax exemptions historically given to the income of political parties continue. Mr Jaitley said just like anyone else, political parties can also deposit their cash held in the old currency in banks till December 30 provided they can satisfactorily explain the source of income and their books of accounts reflect the entries prior to 8th November. <br/><br/>Mr Jaitley clarified that political parties have not been granted any exemption after introduction of Taxation Laws (Second Amendment) Act, 2016 which came into force on the 15th of December. <br/><br/>In Mumbai, Mr Jaitley told reporters that the legal and taxation regimes for all registered political parties remain as they were 20-25 years ago. He said income and donations of political parties fall in the purview of Section 13A of the Income Tax Act 1961 and there is no change in its provisions.

Finance Minister Arun Jaitley has said that political parties cannot accept donations in old 500 and 1,000 rupee notes since these bills have been demonetised. <br/><br/>In a statement last night, Mr Jaitley aid, the government has not granted any new exemption to registered political parties either after 8th November demonetisation or in the last two-and-a-half years. <br/><br/>He said, conditional tax exemptions historically given to the income of political parties continue. Mr Jaitley said just like anyone else, political parties can also deposit their cash held in the old currency in banks till December 30 provided they can satisfactorily explain the source of income and their books of accounts reflect the entries prior to 8th November. <br/><br/>Mr Jaitley clarified that political parties have not been granted any exemption after introduction of Taxation Laws (Second Amendment) Act, 2016 which came into force on the 15th of December. <br/><br/>In Mumbai, Mr Jaitley told reporters that the legal and taxation regimes for all registered political parties remain as they were 20-25 years ago. He said income and donations of political parties fall in the purview of Section 13A of the Income Tax Act 1961 and there is no change in its provisions.