Quick Summary
The Supreme Court on Monday issued notice on a petition challenging the constitutional validity of Section 13A(d) of the Income Tax Act, which permits political parties to accept cash donations up to Rs 2,000 without disclosing the identity of contributors. A Bench of Justice Vikram Nath and Justice Sandeep Mehta sought responses from the Election Commission of India (ECI), the Central Board of Direct Taxes (CBDT), and the Ministry of Finance after hearing the plea filed by Dr. Khem Singh Bhati
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FAQ :
The Supreme Court is reviewing a petition challenging the constitutional validity of Section 13A(d) of the Income Tax Act, which allows political parties to accept cash donations up to £2,000 without disclosing the donor's identity.
The petition was filed by Dr. Khem Singh Bhati.
The petitioner argues that the provision allows for opacity in political funding, contradicts the push for digital payments, and undermines voters' right to know the sources of political financing. Discrepancies between party reports and tax returns, and the potential misuse of splitting large donations into smaller cash payments, are also highlighted.
The Election Commission of India (ECI), the Central Board of Direct Taxes (CBDT), and the Ministry of Finance have been asked to file their responses.
The petitioner seeks to strike down the relevant section as unconstitutional, mandate disclosure of PAN and bank details for all contributions, require independent audits of party accounts, and prohibit cash donations entirely.
The challenge comes after the Supreme Court struck down the Electoral Bonds Scheme, with the plea arguing that anonymous cash donations, even small ones, also defeat the purpose of transparent electoral financing.
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