Income Tax Dept Freezes All Congress Party Accounts

Congress treasurer Ajay Maken on Friday said that the Income Tax department has frozen all the bank accounts of the party, including that of the Youth Congress.

At a press conference, Maken said that the action was taken due to a 45-day delay in filing IT-returns for the 2018-19 financial year. The IT department imposed a a penalty of Rs 210 crore on the party for the delayed filing of the 2018-19 financial year's tax returns.

Maken said, "Congress party’s accounts have been frozen. Democracy has been frozen."

With the Lok Sabha general elections likely in April dates of which are yet to be announced, the sudden move has come as a shock.

The Congress has approached the Income Tax Appellate Authority (ITAT) to de-freeze the accounts, Maken said.

Maken speaks on electoral bonds verdict and the current predicament

The Congress treasurer said that the money that was frozen is the money collected through crowd-funding or through the membership drive of the party.

A total of Rs 25 crores was collected, said Maken, adding, "This isn’t some corporate’s money. This is the money we have collected through crowd-funding.

"The electoral bonds, which have been declared unconstitutional by the Supreme Court...the BJP is spending all the money they collected through electoral bonds. Meanwhile, Congress’ account has been frozen," he added.

Maken emphasized that there is nothing more detrimental to a country's democracy. Critiquing the government, Maken questioned whether the country is headed towards a one-party rule?

"It is not only bank accounts that have been frozen, I believe democracy itself is in deep freeze," Maken further said.

Maken stated that the party became aware of this issue only one day before February 14 and that the checks issued by the Congress are not functioning.

No money to pay bills: Maken

According to Maken, the deadline for the income-tax returns for 2018-19 had been extended to December 31, 2019. He said, "We were late by 40-45 days. But a lot of the income tax payees often delay the submission of returns by a few days. There is a penalty. But it doesn't mean you freeze the accounts."

He further questioned the timing of the move. "This happened back in 2018-19. And now they are doing this just 2 weeks before the announcement of the elections," said Maken.

The leader stated that this action is unprecedented, affecting everything. He expressed concern about the lack of funds to pay electricity bills and salaries. Additionally, he mentioned potential negative effects on the Bharat Jodo Nyay Yatra led by Rahul Gandhi.

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