TRANSPARENCY IN ELECTORAL FUNDING

• Need to cleanse the system of political funding in India.

• Maximum amount of cash donation, a political party can receive, will be Rs. 2000 from one person.

• Political parties will be entitled to receive donations by cheque or digital mode from their donors.

• Amendment to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the Government of India would frame in this regard.

• Every political party would have to file its return within the time prescribed in accordance with the provision of the Income-tax Act.

• Existing exemption to the political parties from payment of income-tax would be available only subject to the fulfilment of these conditions.