What is the significance of including electoral bonds in the new Income Tax Bill

1. Increased Transparency: The inclusion of electoral bonds in the new Income Tax Bill is seen as a measure to enhance transparency in political funding.

• It requires political parties to disclose details of donations received through electoral bonds, making the process more accountable.
• By linking electoral bonds to the Income Tax Bill, the government aims to regulate political funding and bring more visibility to the sources of funding.

2. Curbing Black Money: Experts suggest that this move could help in curbing the inflow of black money into political funding.

• Through the scrutiny provided by the Income Tax Bill, the government can track the flow of funds and deter illegal or unaccounted donations.
• By aligning electoral bonds with the tax framework, the government can ensure that political funding is done through legitimate channels.