Last Updated: March 21, 2024, 23:37 IST
The Congress has accused the Modi government of crippling the party by freezing its bank accounts in a tax dispute. (File pic/PTI)
The entire case pertains to Assessment Year 2018-19. The Congress did not file returns within the specified time limit, by September 30, 2018
Congress leaders Sonia Gandhi and Rahul Gandhi alleged on Thursday that Prime Minister Narendra Modi had made a systematic effort to cripple the party financially, maintaining that the income tax department had frozen its bank accounts weeks ahead of the Lok Sabha elections.
However, during a press conference at the Bharatiya Janata Party headquarters, former union minister Ravi Shankar Prasad said that the Congress could not access its bank accounts because the party did not file I-T returns in time and the BJP had nothing to do with it.
What is the case with the Congress?
The entire case pertains to Assessment Year 2018-19. The Congress did not file returns within the specified time limit, by September 30, 2018.
The deadline for filing returns was extended until December 31, 2018. But the party filed returns in February 2019.
Failure to file returns within the specified time led to the end of tax exemption.
The original tax liability was Rs 103 crore. Due to the delay, an interest of Rs 32 crore was imposed.
Including interest, the total tax liability amounted to Rs 135 crore.
The income tax department has successfully recovered the entire amount.
What do income tax regulations say for political parties?
Section 139 (4B) of the Income Tax Act says that it is mandatory for political parties to file income tax returns.
Section 13A of the Act says that political parties are eligible for tax exemption on donations. However, it is necessary to file returns on time.