What are Electoral Bonds? What were the benefits before SC’s verdict?

The Supreme Court has pronounced the electoral bonds as unconstitutional. It has also banned the purchase and sale of electoral bonds with immediate effect. 
 

Electoral bonds are also called election donations. It is a means through which donations are made to political parties in the country. 
 

The electoral bonds were included in the Income Tax Act by the government. People could enjoy income tax exemptions when using electoral bonds. 
 

Electoral bonds offered tax exemptions under sections 80GGC and 80GGB of the Income Tax Act. 
 

Companies could also benefit from electoral bonds by saving taxes. The government amended Section 182 of the Companies Act 2013 before issuing the bonds.