Amidst the divided opinions on whether electoral bonds as a tool will be effective in curbing the use of black money in the election process, there appears to be a question mark over their tax-exemption status.

Donations made through an electoral trust, a section 25 not-for-profit company, are eligible for tax deduction under section 80GGB/80GGC of the Income-Tax (I-T) Act. “We are not sure whether donor of electoral bond will get tax exemption,” says Anil Verma, head, Association for Democratic Reforms (ADR).