A Revival in Disguise? The Reappearance of Electoral Bonds in Income Tax Bill 2025

The new Income Tax Bill 2025 controversially retains provisions concerning electoral bonds, previously declared unconstitutional by the Supreme Court. Experts suggest this could be an oversight or a strategic government move for future amendments. Despite structural changes, the bill largely carries forward existing provisions, focusing on simplifying complexities built over decades.

The unveiling of the Income Tax Bill 2025 has raised eyebrows, as it retains contentious provisions related to electoral bonds. These provisions linger, despite being labeled unconstitutional by the Supreme Court in 2022, questioning whether this inclusion is a legislative oversight or a calculated decision by the government.

Electoral bonds remain a contentious issue. Incorporated into Schedule VIII of the new bill, they pertain to political party income exclusions. However, as per a Supreme Court judgment, these anonymous funding means were scrapped due to constitutional violations, casting doubt on their return.

Analysts like Rajat Mohan argue this might be a strategic move, hinting at future reforms, as the new bill primarily restructures old provisions without major changes. With a record of Rs 16,518 crore worth of electoral bonds issued by SBI since 2018, the debate on transparency and donors' anonymity continues.