Electoral Trusts

With the scrapping of the electoral bonds scheme, companies have again turned to electoral trusts as a preferred source of political donations for companies in 2024-25.

  • The Electoral Trusts Scheme was introduced by the government in 2013.
  • Electoral trusts are one of the funding channels for political parties.
  • They became a preferred source of political donation for companies in 2024-25 after the SC scrapped the electoral bonds scheme in 2024.
  • Both schemes are meant to facilitate donations to political parties by corporations and individuals. It is regulated by the Central Board of Direct Taxes (CBDT) under the Electoral ....
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