If you or me, a common man or citizen of the country, whose tax is deducted at source failed to file returns, we are taken to task. It even goes to the extent of arrest too! However, the same IT is partial to political parties and politicians. Not only they can refuse but they can evade paying tax too. They can go to Court, drag and stall the entire procedures and buy time as they wish!
Indian National Congress, a party that brags about itself, as the only party to fight for India's Independence is having serious issues now with the Income Tax office of India. The party received a fresh notice of over Rs 1,745 crore, total tax demand rises to Rs 3,567 crores from the Income Tax office of India. After the Income-Tax department’s raids before the 2019 Lok Sabha elections, revealing alleged “unaccounted transactions” totaling Rs 523.87 crore, a series of notices have been issued. The party was served notices by the Income-Tax department spanning five years (Assessment Year 1994-95 and AYs 2017-18 to 2020-21), demanding a payment of Rs 1,823 crore.
It all started with a case that is more than 30 years old. IT cited, discrepancies in the IT returns filed by the party for the year 1994-95. This was flagged in 1997. However, the party failed to respond nor paid any taxes. The IT department wanted to recover the tax money, penalty and the interest for both which is a huge amount today.
In India, political parties are exempted from Income tax. The tax is exempted on the donations they get and also on the rent-revenues they get (remember, Congress is a party that has huge land all over the country is getting revenue in Millions every month and they are 100% tax-free!). However, they are bound to file returns based on their collections every year. There is a catch here. If the political parties failed to file the returns by the deadline issued by the IT department, the entire revenue will be treated as taxable.
Indian National Congress, a party who always considered themselves above the nation, did not file the returns on time. IT slapped tax for the entire revenue collected by them. I IT slapped a INR 199 Crore tax penalty and collected INR 135 crores from the bank accounts of Congress. The party approached New Delhi High Court against this but the Court dismissed. Now they have taken this in Supreme Court.
The 3rd case is worse. From 2014 to 2021, IT maintained that there were unaccounted transactions. In the election year 2019, the party received lots of funds. During the raids, they found out "third-party" entries maintained in the diaries and taxed that too. This is a period prior to Electoral bonds. The rule that time stated that any funds that values above Rs 20000 should be declared in the returns.
Now all put together, the Congress party has to pay INR 3,567 crores as recovery amount - tax amount, penalty and interest. The timing of this notice is the worst part. As is, Congress is whining about lack of funds. Now, with this notice, IT has crippled the party from spending much during the elections.
While this may take political angle initiating blaming games against each other, giving a fodder to the media, what i wonder is, how these politicians and political parties are getting away with such serious violations against the law? Remember, they are the law-makers. Are we dumb enough?
The party is claiming "Tax-terrorism" on them! What an irony! You are supposed to be law-makers and you have broken the law unabashedly and yet you claim you are a victim of tax-terrorism. If a common man evaded the tax for a few thousands, he is arrested and his career is killed but when you do it in Billions, you claim you are victimised? What sort of people are you? In a democracy, "Might is Right" they say. Congress is proving this from time and again.
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