Congress slapped with ₹1,700 crore tax notice amidst financial crunch

The Income Tax Department issued a ₹1,700 crore notice to Congress following the Delhi High Court's dismissal of their petition against tax notices. The notice covers assessment years 2017-18 to 2020-21 and includes penalties and interest charges.

'Tax terrorism'

Expressing concern, Jairam Ramesh from Congress labelled the actions as "tax terrorism," accusing BJP of leveraging tax authorities against the party to cripple it financially.

"The notices are being sent to cripple us financially. This is tax terrorism, and this is being used to attack the Congress, This has to stop," Congress's Jairam Ramesh told reporters at a press conference on Friday (March 29).

Cong faces penalty

Facing financial crunch, Congress has been fined penalty of ₹200 crore and a freeze on its funds imposed by Income Tax authorities. The party intends to appeal to the Supreme Court, alleging financial suffocation orchestrated by the BJP.

This comes prior to the forthcoming Lok Sabha elections starting April 19. Earlier in February, the Income Tax Department found discrepancies in Congress' tax returns, demanding ₹200 crore. The Income Tax Appellate Tribunal (ITAT) upheld the demand and froze the party's accounts.

The Congress condemned the freezing of funds as an "assault on democracy," especially given its timing just ahead of the Lok Sabha elections.

Recently, the Delhi High Court rejected Congress' petitions contesting the tax reassessment proceedings initiated against them for four years.

Electoral bonds

The issue of political party funding gains prominence in this election, remarkably after the Supreme Court invalidated electoral bonds.

The SC invalidated the scheme which benefited the BJP primarily, citing violations of citizens' right to information. The Congress and other opposition parties welcomed the decision.