{"id":21833,"date":"2024-03-24T10:05:38","date_gmt":"2024-03-24T04:35:38","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=21833"},"modified":"2025-04-06T15:39:02","modified_gmt":"2025-04-06T10:09:02","slug":"electoral-trusts","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/electoral-trusts\/","title":{"rendered":"What are Electoral Trusts?"},"content":{"rendered":"<h2>About Electoral Trusts<\/h2>\n<ul>\n<li>These are trusts\u00a0set up by companies with the objective\u00a0to distribute the contributions\u00a0received from other companies and individuals to political parties.<\/li>\n<li>The companies which are\u00a0registered under section 25 of the Companies Act, 1956, are\u00a0only eligible to make an application for approval as an electoral trust.<\/li>\n<li>The\u00a0names of electoral trusts, currently,\u00a0do not indicate the name of the company\/group of companies which set up the trusts.<\/li>\n<li>Who can and who cannot contribute to electoral trusts?\n<ul>\n<li>Who can:\n<ul>\n<li>An individual who is a\u00a0citizen of India<\/li>\n<li>A\u00a0company registered in India<\/li>\n<li>An\u00a0association of persons (Indian residents)<\/li>\n<\/ul>\n<\/li>\n<li>Who cannot:\n<ul>\n<li>An individual who is\u00a0not a citizen of India<\/li>\n<li>Other electoral trusts (approved under the Electoral Trusts Scheme)<\/li>\n<li>Contributors without PAN<\/li>\n<li>NRIs without a passport number<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>For administrative expenses, the electoral trusts are\u00a0permitted to set aside a maximum of 5 percent of the total funds collected during a financial year. The remaining 95 percent of total income of the trusts, including any surplus from the previous financial year, is required to be distributed to eligible political parties.<\/li>\n<li>What Laws\/Rules govern the creation and functioning of electoral trusts?\n<ul>\n<li>The Central Government amended the\u00a0Income Tax Rules, 1962, on January 31, 2013, to\u00a0insert Rule 17CA,\u00a0which\u00a0lists the functions of electoral trusts\u00a0approved\u00a0by the Central Bureau of Direct Taxes (CBDT).<\/li>\n<li>The Central Government, also launched \u2018The Electoral Trusts Scheme, 2013, which\u00a0specified the eligibility and procedure for registration as an electoral trust, apart from laying down the format for their registration.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Central Bureau of Direct Taxes (CBDT)?<\/h3>\n<p>It is a statutory authority functioning under the Central Board of Revenue Act, 1963. The CBDT is a part of the Department of Revenue in the Ministry of Finance. Its functions include formulation of policies, dealing with matters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax Department. CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the Government.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/economictimes.indiatimes.com\/news\/politics-and-nation\/electoral-trusts-since-2014-have-also-weighed-in-favour-of-bjp\/articleshow\/108533225.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\"><u>Electoral trusts since 2014 have also weighed in favour of BJP<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Electoral Trusts are trusts set up by companies with the objective to distribute the contributions received from other companies and individuals to political parties.<\/p>\n","protected":false},"author":5,"featured_media":21834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-21833","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=21833"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/21834"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=21833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=21833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=21833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}