Government approves 17th installment of electoral bonds, sale will start from July 1

Finance Minister Nirmala Sitharaman (File Photo)

The government on Tuesday approved the issuance of the 17th installment of electoral bonds. It will be open from July 1 to July 10. This approval has been given ahead of the assembly elections to be held in five states. In an effort to bring transparency in political donations, arrangements have been made for electoral bonds as an alternative to cash donations to political parties. However, opposition parties have been raising concerns about the perceived lack of transparency in donations through such bonds.

“State Bank of India has been authorized to issue and encash Electoral Bonds through its 29 authorized branches between July 1 and July 10,” the Finance Ministry said in a statement. , Guwahati, Chennai, Thiruvananthapuram, Patna, New Delhi, Chandigarh, Shimla, Srinagar, Dehradun, Gandhinagar, Bhopal, Raipur, Mumbai and Lucknow.

Will get benefit of tax exemption

If you also invest in these bonds, then you will get the benefit of tax exemption. You also get exemption in Income Tax under Section 80GGC/80GGB of Income Tax Department. Apart from this, political parties will get donations in the form of bonds under Section 13A of the Income Tax Act. Electoral bonds have emerged as a popular medium for donations in the past few years.

What is this electoral bond?

The Central Government had announced the introduction of Electoral Bonds in the budget of the financial year 2017-18 to keep the country’s political parties transparent in the election donations. Electoral bond means a bond on which its value or value is written like a currency note.

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