SC Hearing on Stopping Cash Donations to Political Parties | Political Funding UPSC Current Affairs
Context
• SC agrees to examine a petition seeking ban on all cash donations to political parties, including those below ₹2,000.
• Aim: strengthen transparency and close loopholes used for routing unaccounted money.
• Notice issued to Election Commission, Union Govt, CBDT, and major national parties.
Legal Provision Involved
Section 13A – Income Tax Act, 1961
A special provision granting tax exemption to political parties subject to conditions like maintaining audited accounts.
Clause (d) of Section 13A
• Allows parties to accept cash donations up to ₹2,000.
• No mandatory disclosure of donor identity for these small donations.
• Petition challenges its legality and transparency deficit.






