Congress Seeks Judicial Intervention Amid Income Tax Department's Rs 65 Crore Withdrawal

Even though the matter is still pending, the income tax department withdrew Rs 65 crore from the Congress' bank accounts on Wednesday, prompting the party to ask the courts to step in and "save democracy."

Because political parties are free from paying taxes under both the Income Tax Act and the Representation of the People Act, this is the first incidence of this kind in post-Independence history. The exemption may only be revoked in the event that a political party misses deadlines for submitting return papers or fails to provide information about contributions it has received. After some delay, the Congress submitted the 2018–19 income tax returns, but not before bringing the matter to the Income Tax Appellate Tribunal for resolution.


The Narendra Modi government's income tax action is being seen by the Congress as a political vengeance; many top officials suspect that this is part of a plot to cripple the already financially precarious major Opposition party ahead of a crucial parliamentary election. The Congress has voiced its strong opposition to the income tax department's request to freeze party finances.

"Alarming Update: Concerns rise over the actions of Central Government agencies, potentially threatening the multi-party system in India," said Congress treasurer Ajay Maken on X. India's democracy will end if current trends continue. In the absence of judicial action, the fundamentals of democracy will be jeopardized.

He said, "Since yesterday evening, Congress has been a victim of the anti-democratic attitude of the Government machinery," and pledged to make further discoveries "within a few hours." We have complete confidence in India's legal system.

"Yesterday, the Income Tax Department mandated banks to transfer over Rs 65 crore from the Congress, Youth Congress, and NSUI accounts to the Government — Rs 5 crore from IYC and NSUI, and Rs 60.25 crore from Congress, marking a concerning move by the BJP Government," he wrote in another message later that evening.

"Is it common for national political parties to pay income tax?" he inquired further. No. Is income tax paid by the BJP? No. So why is the Congress party having to deal with an extraordinary Rs 210 crore demand? We made our argument throughout today's ITAT sessions. Tomorrow is scheduled to be another hearing day. The monies in issue were obtained via membership campaigns by the NSUI and IYC, as well as through crowdfunding. This brings up an important issue about the condition of democracy. Is it in danger? The court currently represents our best chance.

Income from home property, income from other sources, capital gains, and income from voluntary donations that a political party receives from any person are all free from taxation for political parties under Section 13A of the Income Tax Act. No relief will be granted if the party fails to file a report of its books on time, according to both the Income Tax and the Representation of the People Act.

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