Department of Economic Affairs – Electoral Bond Scheme 2018
Ministry of Finance, Department of Economic Affairs issued notification vide S.O. 29(E) dated New Delhi, the 2nd January, 2018 regarding Electoral Bond Scheme 2018 and details as follows.
In exercise of the powers conferred by sub-section (3) of Section 31 of the Reserve Bank of India
Act, 1934 (2 of 1934), the Central Government hereby makes the following Scheme, namely:-
- Short title and commencement.–(1) This scheme may be called the Electoral Bond Scheme, 2018.
(2) It shall come into force on the date of its publication in the Official Gazette.
Eligibility for purchase and encashment of electoral bond.-(1) The Bond under this Scheme may be purchased by a person, who is a citizen of India or incorporated or established in India.
(2) A person being an individual can buy bonds, either singly or jointly with other individuals.
(3) Only the political parties registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) and secured not less than one per cent of the votes polled in the last general election to the House of the People or the Legislative Assembly, as the case may be, shall be eligible to receive the bond.
(4) The bond shall be encashed by an eligible political party only through a bank account with the authorised bank.
The bond can be encashed only by an eligible political party by depositing the same in their designated bank account.
(2) The amount of bonds not encashed within the validity period of fifteen days shall be deposited by the authorised bank to the Prime Minister Relief Fund.
Tax treatment.–– The face value of the bonds shall be counted as income by way of voluntary contributions received by an eligible political party, for the purpose of exemption from Income-tax under section 13A of the Income tax Act, 1961.
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