What are Electoral Bonds? What were the benefits before SC’s verdict?
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Electoral bonds as unconstitutional
The Supreme Court has pronounced the electoral bonds as unconstitutional. It has also banned the purchase and sale of electoral bonds with immediate effect.
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Election donations
Electoral bonds are also called election donations. It is a means through which donations are made to political parties in the country.
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Electoral bonds were introduced by the government in 2017.
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Tax exemptions
The electoral bonds were included in the Income Tax Act by the government. People could enjoy income tax exemptions when using electoral bonds.
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Exemptions under
Electoral bonds offered tax exemptions under sections 80GGC and 80GGB of the Income Tax Act.
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Benefits to the companies
Companies could also benefit from electoral bonds by saving taxes. The government amended Section 182 of the Companies Act 2013 before issuing the bonds.
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Supreme Court's verdict
Electoral bonds could be purchased through SBI. On 15 February 2024, the Supreme Court scrapped electoral bond schemes.