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Informist, Monday, Nov. 24, 2025

NEW DELHI – The Supreme Court Monday issued notices to the government, the Election Commission of India, the Central Board of Direct Taxes, and others on a public interest litigation seeking to quash a law that gave tax exemption to political parties on getting anonymous cash donations below INR 2,000. The top court listed petitioner Khem Singh Bhati's plea against section 13A(d) of Income Tax Act, 1961 after four weeks.

The petitioner said that tax exemption to political parties on getting anonymous cash donations below INR 2,000 was violative of Articles 14 and 19(l)(a) of the Constitution of India. The receipt of huge amounts of money in cash purportedly below INR 2,000 violates the right to information of voters about the source of funds of the political parties, the petitioner said. The voters have the right to information to all the amounts received by the political parties to enable them to cast their votes with full knowledge of the donors and their antecedents, said the petitioner.

The petitioner sought direction that the political parties must disclose the name and other particulars of the person paying any amount of money to it and that no amount can be received in cash so as to maintain transparency in the political funding. It sought direction to the poll panel to scrutinise Form 24A contribution reports of all recognised political parties and require them to deposit the amount received by way of contributions for which address and PAN number have not been furnished. Bhati requested the court to ask the poll panel to prescribe as a condition of registration of political party and allotment of election symbol that no amount can be received in cash by any political party.

Bhati sought a direction to the Central Board of Direct Taxes to scrutinise the income tax returns and the audit reports filed by the political parties for the last five years. Thereafter, the tax department initiate appropriate proceedings for levy of tax, penalty, and prosecution for failure to comply with the requirements of section 13A of the Income Tax Act, 1961 read with section 29C of the Representation of People Act, 1951, said the petitioner.  End

Reported by Surya Tripathi

Edited by Ashish Shirke

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