SC to hear plea tomorrow against anonymous cash donations to political parties

The Supreme Court is set to hear a legal challenge on Monday regarding a provision in the Income Tax Act that permits political parties to accept anonymous cash donations of less than Rs 2,000. The case, filed by petitioner Khem Singh Bhati, contends that anonymity in such donations hinders transparency in elections, preventing voters from knowing the funding sources and intentions of donors.

The legal team argues that this clause violates Clause (d) of Section 13A of the Income Tax Act, 1961, and has requested the court to rule it unconstitutional. They propose that political parties must disclose the donor's name and other relevant details to ensure transparency in political funding. The petition alludes to the Supreme Court's 2024 decision invalidating the electoral bonds scheme, emphasizing the need for transparency in political funding.

The plea further calls for the Election Commission to examine contribution reports of recognized political parties and take action against those lacking complete donor information. It also seeks independent audits of party accounts and penal actions under the Election Symbols Order, 1968, for defaulting parties. Additionally, the petitioner urges the Central Board of Direct Taxes to review the income tax returns and audit reports of political parties over the past five years, potentially leading to tax, penalty, or prosecution proceedings for violations of Section 13A of the Income Tax Act in conjunction with Section 29C of the Representation of the People Act.