Supreme Court Issues Notice on PIL Challenging Tax Exemption For Cash Donations

The Supreme Court has issued notice on a fresh Public Interest Litigation challenging the constitutionality of Section 13A sub-clause (d) of the Income Tax Act, which grants tax exemptions for cash donations up to Rs 2,000 and for contributions via electoral bonds.

Filed by Dr. Khem Singh Bhati, the petition argues that the provision creates an opaque political funding mechanism, undermining democratic transparency and accountability. 

It contends that with widespread digital payments, there is no justification for cash donations and seeks directions for stricter scrutiny of political party contributions, PAN and bank details disclosure, and audit of party accounts.

[Khem Singh Bhati v. Election Commission of India]