Political Finance Database

India

India

Bans and limits on private income
Public funding
Regulations of spending
Reporting, oversight and sanctions
Question Value
1. Is there a ban on donations from foreign interests to political parties?
Code
Yes
2. Is there a ban on donations from foreign interests to candidates?
Code
Yes
3. Is there a ban on corporate donations to political parties?
Code
No
Comment
Ban applies to companies which have been in existence for less than three years.
4. Is there a ban on corporate donations to candidates?
Code
No
Comment

Ban applies to companies which have been in existence for less than three years.

5. Is there a ban on donations from Trade Unions to political parties?
Code
No
6. Is there a ban on donations from Trade Unions to candidates?
Code
No
7. Is there a ban on anonymous donations to political parties?
Code
Yes
Comment
No direct ban, but de facto ban through requirement to record or report identity of donor.
8. Is there a ban on anonymous donations to candidates?
Code
No
9. Is there a ban on donations from corporations with government contracts to political parties?
Code
No
Source
10. Is there a ban on donations from corporations with government contracts to candidates?
Code
No
Source
11. Is there a ban on donations from corporations with partial government ownership to political parties?
Code
Yes
Comment

If goverment has a majority share

Source
12. Is there a ban on donations from corporations with partial government ownership to candidates?
Code
Yes
Comment

Ban applies to companies with state majority ownership.

Source
13. Is there a ban on the use of state resources in favour or against a political party or candidate?
Code
Yes
Comment
Governement vehicles may for example not be used for furtherance of the interest of the party in power, Ministers shall not make use of official machinery or personnel during the electioneering work, and public media shall not give biased coverage.
14. Is there a limit on the amount a donor can contribute to a political party during a non-election specific period?
Code
Yes, for legal persons
Comment

Individuals are not subject to any donation limits. Total amount which may be contributed by a company to any political party in any financial year shall not exceed 7.5 per cent of its average net profits during the three immediately preceding financial years.

Source

 

'Section 29B of the Representation of People Act regulates contributions to political parties, and defines no limit to the amount an individual may donate to parties. (...)1.Under Section 182 of the Companies Act 2013, the aggregate of the amount which may be contributed by the company to any political party in any financial year shall not exceed 7.5 per cent of its average net profits during the three immediately preceding financial years. A company which has been in existence for less than three financial years cannot contribute any amount directly or indirectly to any political party. Any advertisements paid for by a company in any publication of or on behalf of a political party is a contribution of a political nature. The relevant provision is quoted below:'182. (1) Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party:Provided that the amount referred to in sub-section (1) or, as the case may be, the aggregate of the amount which may be so contributed by the company in any financial year shall not exceed seven and a half per cent. of its average net profits during the three immediately preceding financial years:(b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like, shall also be deemed,?(i) where such publication is by or on behalf of a political party, to be a contribution of such amount to such political party, and (ii) where such publication is not by or on behalf of, but for the advantage of a political party, to be a contribution for a political purpose.' (Source: Money, Politics and Transparency. 2016. Available at;: https://data.moneypoliticstransparency.org/countries/IN/)

15. If there is a limit on the amount a donor can contribute to a political party during a non-election specific period, what is the limit?
Code
Natural persons: No limit. Legal persons: 7.5% of average net profits.
16. Is there a limit on the amount a donor can contribute to a political party during an election?
Code
No
Comment

Regular limit applies. Individuals are not subject to donation limits but companies cannot donate more than 7.5% of their average annual revenue per year.

Source

 

'Section 29B of the Representation of People Act regulates contributions to political parties, and defines no limit to the amount an individual may donate to parties. (...)1.Under Section 182 of the Companies Act 2013, the aggregate of the amount which may be contributed by the company to any political party in any financial year shall not exceed 7.5 per cent of its average net profits during the three immediately preceding financial years. A company which has been in existence for less than three financial years cannot contribute any amount directly or indirectly to any political party. Any advertisements paid for by a company in any publication of or on behalf of a political party is a contribution of a political nature. The relevant provision is quoted below:'182. (1) Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party:Provided that the amount referred to in sub-section (1) or, as the case may be, the aggregate of the amount which may be so contributed by the company in any financial year shall not exceed seven and a half per cent. of its average net profits during the three immediately preceding financial years:(b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like, shall also be deemed,?(i) where such publication is by or on behalf of a political party, to be a contribution of such amount to such political party, and (ii) where such publication is not by or on behalf of, but for the advantage of a political party, to be a contribution for a political purpose.' (Source: Money, Politics and Transparency. 2016. Available at;: https://data.moneypoliticstransparency.org/countries/IN/)

17. If there is a limit on the amount a donor can contribute to a political party during an election, what is the limit?
Code
Legal persons: 7.5% of average annual revenue.
Comment
However, there are no donation limits for individuals.
18. Is there a limit on the amount a donor can contribute to a candidate?
Code
No
Comment
There is no law that limits or regulates contributions made to a candidate for election.
19. If there is a limit on the amount a donor can contribute to a candidate, what is the limit?
Code
Not applicable
Comment
NA
20. Is there a limit on the amount a candidate can contribute to their own election campaign?
21. Is there a limit on in-kind donations to political parties?
22. Is there a limit on in-kind donations to candidates?
23. Is there a ban on political parties engaging in commercial activities?
24. Is there a ban on political parties taking loans in relation to election campaigns?
25. Is there a ban on candidates taking loans in relation to election campaigns?
26. Is there a ban on donors to political parties/candidates participating in public tender/procurement processes?
27. Are there provisions requiring donations to go through the banking system?
Question Value
28. Are there provisions for direct public funding to political parties?
Code
No public funding available
29. What are the eligibility criteria for political parties to receive public funding?
Code
Not applicable
Comment
NA
30. What is the allocation calculation for political parties to receive public funding?
Code
Not applicable
Comment
NA
31. What are the provisions on 'ear marking' direct public funding to political parties (how it should be used)?
Code
Not applicable
Comment
NA
32. Are there provisions for free or subsidized access to media for political parties?
Code
Yes
33. What criteria determine allocation for free or subsidized access to media for political parties?
Code
  • Equal
  • Other
Comment
The allocation of the Election Commission is based on past performance of a recognised political party. Equal access during an election then applies to all registered parties concerned.
34. Are there provisions for free or subsidized access to media for candidates?
Code
No
35. Are there provisions for any other form of indirect public funding?
Code
  • Yes
  • Candidates are entitled to copies of the electoral roll and other material
Comment
Political parties may be entitled to tax relief if donations are reported to the Election Commission as prescribed.

Candidates of recognised political parties are entitled to copies of the electoral roll and?other material and items that the Central Government in consultation with the Election Commission may determine. Applies to the elections to the House of the People and to the Legislative Assembly of?a State.?
36. Is the provision of direct public funding to political parties tied to gender equality among candidates?
Code
Not applicable
Comment
NA
37. Are there provisions for other financial advantages to encourage gender equality in political parties?
Code
No
Comment

There are provisions for women quotas on the local level, but no financial avantages are given to further encourage gender equality.

Question Value
38. Is there a ban on vote buying?
Code
Yes
39. Are there limits on the amount a political party can spend?
Code
No
Comment
There are are no spending limits for political parties, but if a party's spending directly benefits a candidate or candidates, the amount spent counts towards the spending limits of the candidates concerned.
40. If there are limits on the amount a political party can spend, what is the limit?
Code
Not applicable
41. Are there limits on the amount a candidate can spend?
Code
Yes
Comment

Applies to the elections to the House of the People and to the Legislative Assembly of a State. 

42. If there are limits on the amount a candidate can spend, what is the limit?
Code
Determined by the Central Government
Comment
The limit is determined by the Central Government in consultation with the Election Commission.
43. Are there limits on the amount that third parties can spend on election campaign activities?
44. Are there limits on traditional media advertising spending in relation to election campaigns?
45. Are there limits on online media advertising spending in relation to election campaigns?
46. Do any other restrictions on online media advertisement (beyond limits) exist?
Question Value
47. Do political parties have to report regularly on their finances?
Code
Yes
Comment
Annually
48. Do political parties have to report on their election campaign finances?
Code
No
49. Do candidates have to report on their election campaign finances?
Code
Yes
Comment
Elected candidates shall submit a copy of all expenditures during the election after the election. However, there is no penal provision should candidates decline to submit information.
50. Do third parties have to report on election campaign finances?
51. Is information in reports from political parties and/or candidates to be made public?
Code
Yes
52. Must reports from political parties and/or candidates reveal the identity of donors?
Code
Sometimes
Comment
The identity must be disclosed if the donor gives more than 20,000 Rupees [I$1,350] during a financial year.
53. Must reports from political parties and/or candidates include information on itemized income?
54. Must reports from political parties and/or candidates include information on itemized spending?
55. Which institution(s) receives financial reports from political parties and/or candidates?
Code
  • EMB
  • Other
Comment
Political parties shall submit reports to the Election Commission. Contesting candidates report on their expenses to district election officers, and elected candidates for a House of Parliament report on their assets and liabilities to the Chairman of the Council of States or the Speaker of the House of the People.
56. Which institution(s) is responsible for examining financial reports and/or investigating violations?
Code
EMB
Comment
The Election Commission of India monitors expenditure reports from candidates.
57. What power is granted to the institution(s) responsible for examining reports and/or investigating violations?
58. What sanctions are provided for political finance infractions?
Code
  • Fines
  • Prison
  • Loss of nomination of candidate
  • Loss of political rights
Comment
Apart from fines and imprisonment?related to?bribery, a candidate can be disqualified for three years if he/she has failed to lodge his/her account of election expenses within the time and manner required.
Close tooltip