Call it corporatisation of political parties. Taking a step ahead
towards introducing financial accountability among the political
parties in India, the auditing regulator Institute of Chartered
Accountants of India (ICAI) is set to issue guidelines on standard
accounting norms to its member chartered accountants (CAs) across the
country within a fortnight.
Political parties would be required to furnish their financial
statements annually, which need to be vetted by CAs, who would be
required to follow these guidelines. “We are ready with the final
version of the guidelines and we’ll send it within two weeks,” said G
Ramaswamy, president, ICAI.
The ICAI had submitted a set of recommendations on uniform accounting
and auditing framework to the Election Commission (EC) in May and the
latter has forwarded it to the law ministry for suggestions.
“The recommendations have been forwarded to the law ministry for
further suggestions and for any amendments if required,” an EC
official said.
“It is a positive step as there will be some transparency in income
and expenditure, though a lot may still be done under cover, but
important thing is a beginning towards disclosure would be made,” said
Gurudas Dasgupta, member of Parliament, CPI(M).
ICAI had also sent the recommendations to the Central Board of Direct
Taxes (CBDT). “This move will help in functioning of our new
investigation unit, which is to monitor election expenditures, funding
to political parties and enforce compliance to tax laws by political
parties,” a CBDT source said.
The EC has already set up a separate expenditure monitoring cell last
year. It has deployed income tax officials of the investigation wing
to assess conduct.
ICAI has recommended all parties should follow a common format of
financial statements, which includes balance sheet, income and
expenditure account, and cash flow statement.
towards introducing financial accountability among the political
parties in India, the auditing regulator Institute of Chartered
Accountants of India (ICAI) is set to issue guidelines on standard
accounting norms to its member chartered accountants (CAs) across the
country within a fortnight.
Political parties would be required to furnish their financial
statements annually, which need to be vetted by CAs, who would be
required to follow these guidelines. “We are ready with the final
version of the guidelines and we’ll send it within two weeks,” said G
Ramaswamy, president, ICAI.
The ICAI had submitted a set of recommendations on uniform accounting
and auditing framework to the Election Commission (EC) in May and the
latter has forwarded it to the law ministry for suggestions.
“The recommendations have been forwarded to the law ministry for
further suggestions and for any amendments if required,” an EC
official said.
“It is a positive step as there will be some transparency in income
and expenditure, though a lot may still be done under cover, but
important thing is a beginning towards disclosure would be made,” said
Gurudas Dasgupta, member of Parliament, CPI(M).
ICAI had also sent the recommendations to the Central Board of Direct
Taxes (CBDT). “This move will help in functioning of our new
investigation unit, which is to monitor election expenditures, funding
to political parties and enforce compliance to tax laws by political
parties,” a CBDT source said.
The EC has already set up a separate expenditure monitoring cell last
year. It has deployed income tax officials of the investigation wing
to assess conduct.
ICAI has recommended all parties should follow a common format of
financial statements, which includes balance sheet, income and
expenditure account, and cash flow statement.
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