Trouble mounts for Congress as it gets fresh I-T notice of Rs 1,745 crore; total tax demand rises to Rs 3,567 crore

New Delhi, March 31

In mounting trouble for the cash-strapped Congress, sources in the party said it has received fresh notices from the Income Tax department, raising a tax demand of Rs 1,745 crore for the assessment years 2014-15 to 2016-17.

With this latest notice, the Income Tax department has raised a total demand of Rs 3,567 crore from the Congress.

According to sources, the fresh tax notices relate to 2014-15 (Rs 663 crore), 2015-16 (around Rs 664 crore) and 2016-17 (around Rs 417 crore). The authorities have ended the tax exemption available to political parties and have taxed the party for the entire collections, they added.

The Congress has also been taxed for “third-party entries” made in diaries seized from some of its leaders by probe agencies during raids, the sources said.

The main opposition party on Friday said that it has received notices from the I-T department, asking it to pay around Rs 1,823 crore. The tax authorities have already withdrawn Rs 135 crore from the party’s accounts for a tax demand relating to previous years.

The Congress has moved the court against the Rs 135-crore tax demand and the case is likely to come up before the Supreme Court on Monday. The party has failed to get any relief from the High Court of the Income Tax Appellate Tribunal in this regard.

Congress leaders have contended that similar third-party entries naming BJP leaders in other diaries have not been levied any tax. They have accused the BJP of indulging in “tax terrorism” and financially crippling the principal opposition party during the 2024 Lok Sabha elections.

By doing so, they are disturbing the level playing field during elections, the Congress has alleged. It has also complained to the Election Commission in this regard and urged it to maintain a level playing field.