Trust factor: Easier for corporates to fund political parties
New Delhi, July 07: Donations from business houses to political parties through “electoral trusts” would be cent per cent exempt from tax, Finance Minister Pranab Mukherjee said in his Budget Speech on Monday.
Donations to parties are already tax-free. The trust route will provide an alternative to corporate houses that wish to finance polls, but don’t want to be identified with a party.
“It is a positive move to ensure transparency in funding political parties,” said former Reserve Bank of India governor Bimal Jalan.