31 Mar 2024

Congress Faces Mounting Tax Demand: ₹1745 Crore Notice Adds to Existing ₹1823 Crore

The Income Tax Department has issued a fresh notice to the Congress party, demanding a sum of ₹1745 crore for the period spanning from 2014 to 2017. This new notice compounds the party's tax liabilities, now totaling ₹3567 crore.

Breakdown of the tax demands reveals ₹663 crore for 2014-15, ₹664 crore for 2015-16, and ₹417 crore for 2016-17, sent to the Congress.

Sources affiliated with the Congress party allege that the Income Tax Department has revoked the tax exemptions previously granted to political entities, resulting in taxes being levied on the party's entire revenue collection. Furthermore, reports suggest that taxes have been imposed on entries made by third parties in diaries seized from Congress leaders during raids.

The Congress party had received a prior notice from the Income Tax Department just two days ago, on March 29, amounting to ₹1823 crore. This earlier demand notice pertains to the period from 2017-18 to 2020-21 and includes accrued interest and penalties.

Reacting to the escalating tax demands, senior Congress leader Vivek Tankha expressed incredulity, denouncing the situation as "the height of madness." Tankha highlighted the cumulative tax demands of ₹3567.33 crore within just three days.

Nevertheless, Tankha emphasized the importance of democratic norms, asserting that opposition parties are indispensable for the functioning of a healthy democracy. The Congress party has already challenged the tax demands in the Supreme Court, with a hearing expected on Monday.

Despite the tax department's efforts, they have managed to recover only ₹135 crore from the Congress party's accounts related to previous tax liabilities, subject to the ongoing legal dispute.

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