Congress may have to pay double the tax on its assets, understand the whole matter

Sources told PressNews24 that the total amount to be recovered from Congress after service of the remaining demand notices before March 31 could cross Rs 2,500 crore. This could be the biggest challenge for the Congress so far, because the total assets of the party are around Rs 1,430 crore, while the outstanding tax liability is Rs 2500 crore. In its latest IT return for assessment year 2023-24, the Congress had said it had funds of about Rs 657 crore, net assets of Rs 340 crore and cash and cash equivalents of Rs 388 crore – a total of about Rs 1,430 crore.

How will you repay the liability?
In short, Congress will not be able to pay this amount of Rs 2,500 crore even after bankruptcy, because this amount is much more than its net worth. The IT department gives the option of paying 20 percent of the demanded amount to put a stop to the recovery. Let us tell you that the Congress Party has not received any relief from the Delhi High Court regarding the revaluation of returns of 7 years. Their petitions were rejected earlier this week. A government source said that this is why the Congress held a press conference under the chairmanship of Sonia Gandhi last week because they feared a huge demand notice for these seven years.

Congress preparing to go to Supreme Court
Congress will now go to the Supreme Court to stop the steps taken by the IT department. So far, Congress has received IT demand notices for financial years 1993-1994, 2016-17, 2017-18, 2018-19 and 2019-2020. The biggest demand is for Rs 918 crore for 2018-19. 2019 was also an election year in the country. The IT department is preparing to issue three more notices to Congress in the coming days for assessment years 2014-15, 2015-16 and 2020-21. This entire action is being taken on the basis of facts found during raids on two corporates in 2019 regarding cash payment of Rs 520 crore to Congress by the IT Department.

recovery of 135 crores
The IT Department has made the case that Congress cannot, therefore, claim exemption from paying income tax on its income under Section 13(A) of the Income Tax Act, as the provisions have been violated. The IT department has already recovered Rs 135 crore from the bank accounts of Congress for violations in IT returns for assessment year 2018-19.

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Tags: Congress, Loksabha Election 2024, Loksabha Elections