Congress and Income Tax Department face to face amid election atmosphere

Business News: Congress and Income Tax Department face to face amid election atmosphere. First, the Income Tax Department sent a tax demand of Rs 210 million to the Congress, levying outstanding taxes and penalties. Then Congress had alleged that Rs 135 crore had been withdrawn from its account and in the latest case, tax and penalty of Rs 1700 crore was being demanded. Meanwhile, big news has come quoting sources that Rs 135 crore recovered from Congress is completely legitimate. What is the truth when the political parties of the country are exempted from income tax law?

Sources associated with the Income Tax Department claim that Congress lost income tax exemption in 2018-19 due to extensive use of cash in the electoral process. Therefore, the party’s tax collection of Rs 135 million is in accordance with the provisions of the Income Tax Act. Widespread use of funds in the electoral process based on incriminating material seized by the Federal Revenue Service during a search operation in April 2019, the agency reported. Was revealed. Sources said that in such a situation, the fiscal assessment of the party has been reopened for seven years (from assessment year 2014-15 to 2020-21).

Demand for tax from Congress in 2021 also

Sources say that after the assessment, tax was also demanded from the Congress party in 2021. Letters were sent several times to make payment. The stay petition of the Congress party was dismissed during the proceedings. Subsequently, even after 33 months of the assessment order and 10 months of the order of the Commissioner of Income Tax (Appeals), when the tax was not paid, section 226 of the Income Tax Act ( 3) Recovery proceedings were initiated under. Tax. As per the provisions of the law, recovery processes for pending tax demand of approximately Rs 135 million have been initiated. The petition seeking stay on this process was rejected by the Income Tax Appellate Tribunal (ITAT) and the Delhi High Court. Sources said that after this, Rs 13.5 crore was recovered from Congress under the provisions of Income Tax Act, 1961.

Congress made these allegations

Meanwhile, Congress Party General Secretary Jairam Ramesh said that the opposition is being attacked through tax terrorism before the Lok Sabha elections. Party treasurer Ajay Maken alleged that based on the parameters on which the Congress was fined, a payment of more than Rs 4,600 crore should be demanded from the Bharatiya Janata Party