NEW DELHI – The Income Tax department of India has decided to defer pursuing a payment of 35 billion rupees (US$420 million) from the Congress party until after the conclusion of the general elections in June. This announcement was made to the Supreme Court on Monday, April 1.
The decision offers temporary relief to the Congress party, which had received multiple income tax notices in recent weeks. Authorities had previously levied penalties amounting to 1.35 billion rupees from the party’s bank accounts, just weeks ahead of voting, scheduled to commence on April 19.
The Congress party has criticized the timing of these actions, describing them as an attempt to undermine their campaign financing during the election period. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) has denied any political motivation, asserting that the Income Tax department is acting independently to address tax law violations.
India’s solicitor-general, Tushar Mehta, informed the Supreme Court that the tax authorities would not take any “coercive action” against the Congress party until after the election period. The elections will occur in seven phases from April 19 to June 1, with vote counting set for June 4.
The Supreme Court has scheduled July 24 as the date for the next hearing on the matter, which will address the underlying tax dispute.
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