SC verdict on electoral bonds steps up tax heat on 1,300 companies: Report

At least 1,300 entities have come under the tax lens for making political donations through electoral bonds that were declared unconstitutional by the Supreme Court in February.

According to an Economic Times report, some companies have received notices from the tax authorities regarding deductions claimed for these contributions. It has listed prominent corporations such as Infosys, Embassy Group, Megha Engineering, Aditya Birla Group, JSW Steel, Torrent Pharma, Lupin, Intas, Bharti Airtel, and Alembic Pharmaceuticals that purchased electoral bonds.

Since its inception in January 2018, the electoral bond scheme has so far facilitated political donations of Rs 16,518 crore. However, on February 15, the country's apex court marked it unconstitutional, raising concerns among corporate donors about tax implications on their contributions.

In response, the corporates have approached the finance ministry, seeking intervention and potential relief in the upcoming budget, said the ET report.