The Central Board of Direct Taxes (CBDT) will soon have a dedicated cell to monitor election-related expenditure by political parties and donations made to them.

"A special cell is being created under CBDT to look at election funding," said a finance ministry official. The new cell will be headed by a commissioner rank officer of the I-T department and will monitor election-related expenditure and political funding and enforce compliance to tax laws by political parties and groups, including checking exemptions granted to parties.

The unit will report to the CBDT chairman, who is handling the investigation charge himself, in view of the intensive activity underway to unearth black money in the country. This follows growing reliance of the Election Commission on the I-T department to crack down on unauthorised expenditure during elections and misuse of the garb of political parties to launder money. The EC had roped in I-T department to ensure free and fair polls during Assembly polls. (Economic Times)