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  • Congress Bank Accounts Face Tax Lien, not freeze

    Congress Bank Accounts Face Tax Lien, not freeze

    Congress bank accounts were frozen as claimed by the party on the 16th of February 2024. Congress leader Rahul Gandhi posted on X about the Congress bank accounts. He said “Don’t be afraid Modi ji, Congress is not the name of power of money but of power of people. We have never bowed down before dictatorship, nor will we ever bow down. Every Congress worker will fight tooth and nail to protect India’s democracy”.

    Rahul Gandhi post on X for frozen Congress bank accounts.

    Congress party posted on X saying “The dictator is in fear”.

    Congress bank accounts freeze post on X by the party.

    Status of the Congress bank accounts

    The situation regarding the Congress bank accounts is complex and has seen recent developments. Here’s a summary:

    Initial Claims:

    On February 16, 2024, the Congress party claimed their bank accounts were frozen by the Income Tax Department. Moreover, they alleged this action was politically motivated and hampered their ability to function, including paying bills and salaries.

    Congress claimed that its bank accounts including the Congress Youth Wing bank accounts were frozen by the authorities.

    Income Tax Department’s Response:

    The Income Tax department clarified that they had not frozen the accounts but rather placed a lien of Rs 115 crore on them. This means the party could still access funds exceeding that amount. Ajay Maken the Treasurer of the Congress party confirmed this status by posting on X.

    Congress Bank Accounts on Lien

    Sources said that it was done because the Congress Party didn’t submit tax returns for the financial year 2018-2019. Moreover, the Congress party has not paid the taxes of Rs 210 Crore claimed by the Income Tax Department.

    What Bank Account Lien means

    A bank account lien is a legal claim placed on a bank account by a creditor, such as a bank, government agency, or court, to restrict access to the funds in the account. This means that the funds in the account cannot be withdrawn or transferred until the debt owed to the creditor is satisfied.

    Income Tax Tribunal’s Intervention:

    The Income Tax Appellate Tribunal (ITAT) intervened and allowed the party to operate their accounts beyond the Rs 115 crore lien until February 21, 2024. This temporary relief allows the party to function while the tax dispute is ongoing.

    Current Status:

    As of February 17, 2024, the party’s accounts are not frozen. But face tax lien imposed by the Income Tax department. The party can access funds exceeding the lien amount until February 21st. After this, the situation may change depending on the ITAT’s further decision.

    Additional Notes:

    This situation has sparked political debate, with the Congress party alleging harassment and the government denying any political motive. The underlying tax dispute is still ongoing and the outcome will determine the full implications for the party’s finances.

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