SC to hear plea challenging anonymous cash donations to parties
What's the story
The Supreme Court will hear a petition challenging the provision of the Income Tax Act that allows political parties to accept anonymous cash donations under ₹2,000. The petitioner, Khem Singh Bhati, argues this lack of transparency compromises the integrity of elections by preventing voters from knowing who funds political parties and their motives. He seeks full disclosure of all sources and particulars of political funding.
Legal challenge
Plea refers to SC judgment striking down electoral bonds scheme
The plea seeks to declare Clause (d) of Section 13A of the Income Tax Act, 1961, unconstitutional.
It also refers to a Supreme Court judgment that struck down the electoral bonds scheme in 2024.
The petitioner wants political parties to disclose details of all donors and prohibit cash donations for greater transparency in political funding.
Regulatory oversight
ECI should ensure political parties submit Form 24A contribution reports
The petitioner has also demanded that the Election Commission of India (ECI) should ensure political parties submit Form 24A contribution reports with complete details.
He wants ECI to issue notices to defaulting parties under the Election Symbol Order, 1968.
Further, he wants accounts of all political parties audited by independent auditors appointed by ECI.
Financial scrutiny
CBDT urged to scrutinize income tax returns of political parties
The Central Board of Direct Taxes (CBDT) has also been urged to scrutinize income tax returns and audit reports of political parties for the last five years.
The plea asks CBDT to initiate proceedings for tax, penalty, and prosecution against non-compliance with Section 13A of the Income Tax Act and Section 29C of the Representation of the People Act, 1951.