Congress claims IT department has ‘mandated’ banks to withdraw ₹65 crore from its accounts

The Congress alleged on Wednesday that the Income Tax (IT) department has “mandated” banks to withdraws ₹65 crore from its accounts held in different banks. Accounts of the Indian National Congress, Indian Youth Congress (IYC), and the National Students’ Union of India (NSUI) have all been marked out by the IT department, Congress treasurer Ajay Maken said.

“Yesterday, the Income Tax Department mandated banks to transfer over ₹65 crores from @INCIndia, IYC, and NSUI accounts to the government—₹5 crores from IYC and NSUI, and ₹60.25 crores from INC, marking a concerning move by the BJP Government,” Mr. Maken said in a post on X. “The funds in question were raised through grassroots efforts, including crowdfunding and membership drives by the IYC and NSUI. This situation raises a crucial question about the state of democracy. Is it under threat? Our hope now lies with the judiciary,” Mr. Maken added.

‘Crippling poll preparations’

The action is part of an ongoing tax dispute. The IT department had raised a demand of ₹210 crore from the Congress over its discrepancy in filing IT returns for the assessment year 2018-2019. The matter is now being heard by the Income Tax Appellate Tribunal (ITAT), which has allowed the Opposition party to operate its accounts after keeping ₹115 crore in lien.

However, the Congress has questioned the timing of the move and alleged that it is aimed at “crippling” the election preparations of the principal Opposition party. “Is it common for National Political Parties to pay Income Tax? No. Does the BJP pay Income Tax? No. Why then is the Congress Party facing an unprecedented demand of ₹210 crores?” Mr. Maken asked.

The tax appellate tribunal heard the case on Wednesday and will continue the hearing on Thursday.