New Delhi (TIP)- The Congress on Thursday, March 21, fielded its top three leaders, party president Mallikarjun Kharge and former presidents Sonia Gandhi and Rahul Gandhi, to launch a frontal attack on Prime Minister Narendra Modi and his administration, accusing the government of virtually freezing the main opposition party’s bank accounts weeks before the general elections.
In the first joint press conference addressed by the three, the leaders alleged there was no level playing field before the polls because the Congress was unable to operate its accounts. They also disclosed that in addition to the ongoing tax dispute with the Income Tax (I-T) department over the assessment year (AY) 2018-19, the party received a fresh notice on March 14 over alleged discrepancies in AY 1994-95, when the late Sitaram Kesri was the party treasurer. “A systematic effort is underway by the PM to cripple Congress financially,” said Sonia Gandhi. Rahul Gandhi echoed her. “This is a criminal action on the Congress by the PM and the home minister. This type of activity doesn’t happen without them in today’s India,” he said. The Congress leadership said that they were unable to book flights for its leaders or advertisement spaces due to the shortage of funds.
Kharge contrasted the Congress’s inability to operate its account to the ruling Bharatiya Janata Party (BJP) “amassing huge resources through electoral bonds and other means”. “This can’t be called a free and fair election…. In the 75 years of India’s democratic system, no other party has amassed so much money (as the BJP). For the first time, the government is making money from various ways. …if you want an impartial election, our party’s account should be freed. BJP has never paid any income tax. We are waiting for the final decision of the law,” he said.
In her statement, Sonia Gandhi said the issues taken up were “extremely serious”.
“This issue affects not just the Congress, but impacts our democracy most fundamentally. A systematic effort is underway by the PM to cripple the INC financially. Funds from the public are frozen and money from our accounts is being taken away forcibly. However, even under these most challenging circumstances, we are doing our very best to maintain the effectiveness of our poll campaigning,” she added.
Registered political parties are exempted from paying tax on specified income such as voluntary contributions, house property, income from other sources and capital gains, under section 13A of the Income Tax Act. But this exemption is subject to a set of stipulations, including maintenance of books of account, records of each contribution of more than ?20,000 and audit reports by a chartered accountant Additionally, political parties must not receive donation of more than Rs 2,000 otherwise than by way of cheque, demand draft or through bank account. Parties must also furnish their verified return of income for the previous year
The Congress’s claim of full exemption was rejected on two grounds. One, the party did not submit its return of income within the time limit and two, the Congress received cash donations to the tune of ?14.49 lakh in excess of ?2,000. The Congress has rejected the allegation, saying it submitted returns within the stipulated time and the money received was from party legislators and office-bearers, and therefore could not be construed as “donations” under the IT Act.