Donations by such trusts are a major source of contribution for political parties.(Representational)
The Central Board of Direct Taxes has given approval to three new electoral trusts and renewed approval for 15 others.
The CBDT has issued an updated list of approved electoral trusts as on December 12, 2022, with names of 18 such entities.
Small Donation Electoral Trust, Independent Electoral Trust and Bhartiya Bhumi Electoral Trust have been given fresh approval, while approval has been renewed for trusts such as Prudent Electoral Trust and Progress Electoral Trust.
A former senior official of the Election Commission said when such bodies fulfil criteria, the CBDT approves them to function as electoral trusts.
The updated list was put in public domain by the Election Commission on Tuesday.
An electoral trust can receive voluntary contributions from an individual who is a citizen of India, a company which is registered in India and a firm or Hindu undivided family or an association of persons or a body of individuals, resident in India.
An electoral trust will distribute funds only to eligible political parties registered under the election law.
Donations by such trusts are a major source of contribution for major political parties.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)