look news india
The Supreme Court has delivered a conclusive verdict on the validity of electoral bonds ahead of the 2024 general elections. The Supreme Court has banned electoral bonds, terming them unconstitutional. The Electoral Bond Scheme was implemented to bring transparency in the process of purchasing election funds. According to information received through RTI application, bonds worth more than Rs 570 crore were sold during the period from 2 to 11 January 2024. The electoral bond scheme was started in the year 2018.
Out of the electoral bonds worth Rs 12,008 crore sold during the year 2018 to 2023, BJP has received 55 percent i.e. electoral fund of Rs 6564 crore. Congress has received 9.5 percent i.e. Rs 1135 crore in election funds.
Now that the Supreme Court has imposed a ban on the sale of electoral bonds, the question arises that what is an electoral bond? When were electoral bonds introduced in the country? Do buying these bonds provide returns? Many such questions come. Here we find answers to those questions
Will try.
What is an electoral bond?
Electoral bond is a type of promissory note. It can be purchased from any citizen or company from selected branches of State Bank of India. Citizens or corporate companies can donate to political parties of their choice with the help of these bonds.
When did this start?
The provision for electoral bonds was made with the Finance Bill, 2017. The Narendra Modi-led NDA government notified the Electoral Bond Scheme 2018 on 29 January 2018. It started from that day.
When are bonds available for sale?
Electoral bonds are made available by the government for a period of 10 days at the beginning of each quarter. It is sold only during that period. The government has fixed 10 days in January, April, July and early October for purchasing electoral bonds. The government planned to make the sale available for an additional period of 30 days in the Lok Sabha election year.
What was the objective of the electoral bond scheme?
By launching electoral bonds, the government had claimed that this would increase transparency on the political funding front. Those bonds can be used to finance the political party of one's choice.
How did political parties benefit?
Any Indian citizen, corporate and other organizations can purchase electoral bonds. Political parties used to get money by depositing bonds in banks. Banks used to sell electoral bonds only to those customers whose KYC was verified. The name of the donor was not mentioned on the bond.
Do investors get returns in bonds?
Investors in electoral bonds did not officially receive any returns. The bond was like a receipt. Bonds are purchased in the name of the political party to which you wish to donate. The amount written in the bond was made available to the concerned political party.
Do bond buyers get tax breaks?
Instead of donating directly to a political party, a donor donating through electoral bonds is entitled to tax relief under section 80GGC of Income Tax on the amount donated by him.
Questions related to right to information
While introducing electoral bonds, it was said that its purpose was to eliminate black money in donations received by political parties. Attorney General R. Supporting this, Venkataramani told the Supreme Court that this scheme encourages the use of white money in donations to political parties. However, the people who raised their voice against it say that the electoral bonds have been completely subverted and the names of the people who donated through the bonds have been kept secret. Against which the Attorney General argued before the Supreme Court that citizens cannot have a general right to know anything and everything without being subject to reasonable restrictions.