Ahead of Lok Sabha polls, I-T department slaps Congress with Rs 1,700 cr demand notice: Report

New Delhi: The Income Tax department has served a fresh notice of Rs 1,700 crore to the Congress for discrepancies in tax returns for previous years, dealing another blow to the cash-strapped party ahead of the Lok Sabha polls, sources said on Friday.

The tax penalties along with interest relate to discrepancies in tax returns for years 2017-18 to 2020-21, the sources said. The fresh notice was received earlier this week.

The Congress is already facing a funds crunch after Income Tax authorities imposed a penalty of Rs 210 crore and froze its funds. The party has not received any relief from the High Court in the case and is likely to move the Supreme Court.

The party has accused the BJP of squeezing it financially and of using tax authorities against it ahead of Lok Sabha elections beginning April 19.

Congress's plea against tax re-assessment by I-T authorities was dismissed by Delhi High Court on Thursday.