NEW DELHI: Supreme Court Monday agreed to hear a plea to do away with the exemption granted to political parties under Income Tax law and to restrain the parties from receiving donations in cash.The court sought responses from Centre and Election Commission on the plea which challenged the validity of a provision of the Income Tax Act that allows political parties to receive “anonymous” cash donations below Rs 2,000.A bench of Justices Vikram Nath and Sandeep Mehta also issued notice to all recognised political parties and sought their response on the PIL.According to section 13A, the income of a political party from the following sources is exempt from tax: income from house property, income from other sources, capital gains and income by way of voluntary contributions the party receives from any individual.The petition, filed through advocate Jayesh K Unnikrishnan, said that clause (d) of section 13A of Income Tax Act is violative of Articles 14 and 19(1)(a) of the Constitution, and political parties must disclose the names and all other particulars of persons donating any sum of money and no amount must be received in cash so as to maintain transparency in political funding.”The clause allows political parties to receive anonymous cash donations below Rs 2,000. This lack of transparency deprives voters of crucial knowledge about the source of political funding, including the donors and their motives, preventing them from making a rational, intelligent and fully informed decision when casting their vote. Ultimately, this undermines the purity of the election process and compromises the integrity and accountability of a healthy democracy by allowing the potential influence of undisclosed or tainted money,” the petition said.It said political parties are central entities in a democratic form of govt, and they must function in a transparent manner, with there being special reason for financial transparency to avoid unlawful influences of money power in the policymaking of the political party in govt. Receipt of huge amounts by political parties through purported donations from undisclosed sources is a breach of the public trust doctrine, it said.The bench was initially reluctant to entertain the PIL and suggested that the petitioner move the high court but agreed to examine it after senior advocate Vijay Hansaria stressed that the issue had pan-India implications and involved all recognised political parties.End of ArticleFollow Us On Social MediaVideosSpectacular Tribute: 350th Martyrdom Day of Guru Tegh Bahadur Marked with Light-&-Sound ShowSecond Day of Guru Tegh Bahadur’s 350th Martyrdom Tribute Marked with Devotion in Punjab“Indian market offers smooth trade opportunities,” says ASSOCHAM Secretary‘Why? Why? Why?’ Mamata Slams EC, Flags ‘Unusual & Alarming’ Moves Ahead of Bengal Polls’Doesn’t Deserve LoP Post’: BJP Slams Rahul Gandhi For Missing CJI Surya Kant’s Oath CeremonyAs Pakistan Halts Afghan Transit, Kabul Boosts India Partnership And Fast-Tracks The Chabahar RouteIndia’s Soft Power Rises As Jaishankar Expands Global Gita Mahotsav, Kurukshetra Festival OutreachPunjab: Anandpur Sahib Hosts 3-Day Tribute on Guru Tegh Bahadur’s 350th Martyrdom Year’They Said Arunachal Is China’: Indian Woman Alleges Harassment After Passport Rejection In ShanghaiRajnath Says India Followed Krishna’s Message In Operation Sindoor After Pakistan Misread Decency123PhotostoriesBollywood dramas where a vanished kid storms back as an adult and blows open buried family secretsExpert-approved 4 foods you should never eat on an empty stomachHow to make Paneer stuffed Beetroot Paratha for breakfastHow 1 cup of this drink before bed can help burn belly fat in 30 days and how one can make it at homeDharmendra’s demise: From Krushna Abhishek, Karan Kundrra to Ankita Lokhande; TV celebs pay an emotional tribute to the legendary actorStruggling with fatty liver? 5 Ayurveda-approved food habits to improve liver healthSpeculation to confirmation: Sonam Kapoor’s second pregnancy becomes a masterclass in maternity fashionDisha Patani to Ananya Panday: The most talked-about fashion moments of the dayPlanning 2026 travels? 10 trending destinations in pictures to inspire youThanksgiving side dishes: 5 easy recipes to try this year123Hot PicksDelhi AQI TodayNew Labour CodeChennai rainGold rate todaySilver rate todayPublic Holidays NovemberBank Holidays NovemberTop TrendingLeBron James WifeJoe BurrowShedeur SandersNHL Trade RumorsKirill MarchenkoJa MorantBrad MarchandTyson FuryDrake LondonDenver Nuggets vs Memphis Grizzlies
NEW DELHI: Supreme Court Monday agreed to hear a plea to do away with the exemption granted to political parties under Income Tax law and to restrain the parties from receiving donations in cash.The court sought responses from Centre and Election Commission on the plea which challenged the validity of a provision of the Income Tax Act that allows political parties to receive “anonymous” cash donations below Rs 2,000.A bench of Justices Vikram Nath and Sandeep Mehta also issued notice to all recognised political parties and sought their response on the PIL.According to section 13A, the income of a political party from the following sources is exempt from tax: income from house property, income from other sources, capital gains and income by way of voluntary contributions the party receives from any individual.The petition, filed through advocate Jayesh K Unnikrishnan, said that clause (d) of section 13A of Income Tax Act is violative of Articles 14 and 19(1)(a) of the Constitution, and political parties must disclose the names and all other particulars of persons donating any sum of money and no amount must be received in cash so as to maintain transparency in political funding.“The clause allows political parties to receive anonymous cash donations below Rs 2,000. This lack of transparency deprives voters of crucial knowledge about the source of political funding, including the donors and their motives, preventing them from making a rational, intelligent and fully informed decision when casting their vote. Ultimately, this undermines the purity of the election process and compromises the integrity and accountability of a healthy democracy by allowing the potential influence of undisclosed or tainted money,” the petition said.It said political parties are central entities in a democratic form of govt, and they must function in a transparent manner, with there being special reason for financial transparency to avoid unlawful influences of money power in the policymaking of the political party in govt. Receipt of huge amounts by political parties through purported donations from undisclosed sources is a breach of the public trust doctrine, it said.The bench was initially reluctant to entertain the PIL and suggested that the petitioner move the high court but agreed to examine it after senior advocate Vijay Hansaria stressed that the issue had pan-India implications and involved all recognised political parties.
