By IANS,
New Delhi : Donations to electoral trusts will be allowed a 100 percent deduction from the income of the donor for income tax purposes, Finance Minister Pranab Mukherjee announced here Monday in the union budget for 2009-10.
“The house will agree that it is desirable to bring about transparency in the funding of political parties in the country,” Mukherjee said in his budget speech.
“With a view to reforming the system of funding of political parties, I propose to provide that donations to electoral trusts shall be allowed as a 100 percent deduction in the computation of the income of the donor,” he said.
“For this purpose, electoral trusts will be such trusts as are set up as pass-through vehicles for routing the donations to political parties and are approved by the Central Board of Direct Taxes (CBDT),” the finance minister said.