Indian Polity · Polity
Consider the following statements regarding electoral trusts in India: Statement I: Electoral trusts in India are non-statutory entities that function as intermediaries for political funding and are not governed by any provisions under the Representation of the People Act, 1951. Statement II: Electoral trusts are registered as non-profit companies under Section 8 of the Companies Act, 2013 and are approved and regulated for tax benefits by the Central Board of Direct Taxes (CBDT) under the Income Tax Act, 1961. Statement III: Electoral trusts are permitted to distribute donations only to national political parties and are prohibited from donating to state-recognized political parties. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement II and Statement III are correct, and both of them explain Statement I.
- 2Both Statement II and Statement III are correct, but only one of them explains Statement I.
- 3Only one of the Statements II and III is correct, and that explains Statement I.
- 4None of the statements are completely correct as per the provided combination options.✓
Correct answer
None of the statements are completely correct as per the provided combination options.
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