{"id":5874,"date":"2024-03-21T14:41:36","date_gmt":"2024-03-21T14:41:36","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/03\/21\/tax-dispute-becomes-political-as-india-freezes-oppositions-accounts\/"},"modified":"2024-03-21T14:41:36","modified_gmt":"2024-03-21T14:41:36","slug":"tax-dispute-becomes-political-as-india-freezes-oppositions-accounts","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/03\/21\/tax-dispute-becomes-political-as-india-freezes-oppositions-accounts\/","title":{"rendered":"Tax Dispute Becomes Political as India Freezes Opposition\u2019s Accounts"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"1050\" height=\"550\" src=\"https:\/\/i0.wp.com\/static01.nyt.com\/images\/2024\/03\/21\/multimedia\/21india-opposition-01-wgqj\/21india-opposition-01-wgqj-facebookJumbo.jpg?fit=1050,550&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Tax Dispute Becomes Political as India Freezes Opposition\u2019s Accounts\" title=\"Tax Dispute Becomes Political as India Freezes Opposition\u2019s Accounts\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">India\u2019s largest opposition party accused the national authorities on Thursday of paralyzing its political activities by blocking the party\u2019s access to its bank accounts, in what it described as a heavy-handed response to a tax dispute just weeks before a pivotal general election.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Officials with the party, the Indian National Congress, said that eight of its 11 main accounts at four banks had been frozen, and that there was no clear indication of when the party would regain access to the money.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe can\u2019t support our workers; we can\u2019t support our candidates,\u201d Rahul Gandhi, an Indian National Congress leader, said at a news conference in New Delhi. \u201cOur leaders can\u2019t fly. Forget flying \u2014 they can\u2019t take a train.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cOur ability to fight elections has been damaged,\u201d he said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Campaigning is heating up for a six-week-long election that starts on April 19 and will determine the next prime minister for the world\u2019s most populous democracy. To run election campaigns from the Himalayan mountains to India\u2019s southern shores, political groups <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/15\/world\/asia\/india-election-donations.html\" title=\"\">spend billions of dollars<\/a> in what is seen as one of the world\u2019s most expensive elections.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Under Indian law, political groups are exempted from paying income taxes on their funding from individuals and corporations, but must declare their income to the tax authorities each year. The current dispute relates to how heavily the Indian National Congress should be penalized for past irregularities.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Last month, the country\u2019s Income Tax Department, which is controlled by Prime Minister Narendra Modi\u2019s government, froze the Congress party\u2019s accounts on accusations that it had been 45 days late in filing tax returns on its cash contributions for the 2017-18 financial year. The department also took from the <a class=\"css-yywogo\" href=\"https:\/\/economictimes.indiatimes.com\/news\/politics-and-nation\/i-t-recovers-50-cr-from-cong-as-hc-denies-itat-tax-demand-stay\/articleshow\/108473414.cms?from=mdr\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">party\u2019s bank accounts<\/a> $2 million of the $16 million that it said was owed in penalties.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Congress party has acknowledged filing the tax returns late, but argues that the penalty should be in the thousands of dollars rather than millions.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Last week, a Delhi high court declined to interfere with the tax authorities\u2019 order, saying that it was unable to stop the authorities from freezing the party\u2019s accounts.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In recent years, opposition groups have accused Mr. Modi\u2019s governing Bharatiya Janata Party of establishing a near monopoly over political funding. They accuse Mr. Modi of using the powers of his office to enrich his party and dry up funding for competitors.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Leaders in the Congress party said that freezing its accounts so close to the elections was a political move aimed at crippling India\u2019s main opposition group and pushing the country toward one-party rule.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe idea that India is a democracy is a lie,\u201d Mr. Gandhi said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Modi\u2019s officials rejected those claims, describing them as a desperate attempt by a political opposition that is struggling in an election campaign that is likely to return the B.J.P. to power.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Ravi Shankar Prasad, a leader from the governing party, said the tax exemption for any political group remained valid only if the group declared any contributions to the national tax authorities on time.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIn utter desperation of imminent defeat, the Congress party at the highest level sought to create an alibi today,\u201d Mr. Prasad said on Thursday.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The issue of political financing has exploded in India in recent weeks. The country\u2019s top court recently forced the government-owned State Bank of India to release a list of all those who had made anonymous political donations through a financing mechanism known as \u201celectoral bonds,\u201d removing a veil of secrecy that opposition groups had long argued was helping those in power.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Modi\u2019s party received the highest amount of the funds, more than 10 times that going to the Indian National Congress.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s largest opposition party accused the national authorities on Thursday of paralyzing its political activities by blocking the party\u2019s access to its bank accounts, in what it described as a heavy-handed response to a tax dispute just weeks before a pivotal general election. Officials with the party, the Indian National Congress, said that eight of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static01.nyt.com\/images\/2024\/03\/21\/multimedia\/21india-opposition-01-wgqj\/21india-opposition-01-wgqj-facebookJumbo.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[1456,1965,9539,273,9540,234,301],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/5874"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5874"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/5874\/revisions"}],"predecessor-version":[{"id":5876,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/5874\/revisions\/5876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/5875"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}