AAP may lose tax exemption as donations are under income tax lens

The department had issued the show cause notice to the party's convener Delhi Chief Minister Arvind Kejriwal and three others and sought the party's reply in this regard by first half of this month.

In an embarrassing development on Thursday, the Income Tax Department said Aam Aadmi Party may lose tax exemption for filing wrong audit report.

The Income Tax department on Tuesday had issued a notice to the Aam Aadmi Party asking why it should not be prosecuted for alleged falsification of account books and 'wilful attempt to evade tax on donations received by it. The I-T department had charged the party with not filing a 'true and correct' contribution report for donations received for the assessment year 2014-15 which had been found to be over Rs 30.08 crore after year long investigations.

The department had issued the show cause notice to the party's convener - Delhi Chief Minister Arvind Kejriwal - and three others and sought the party's reply in this regard by first half of this month.

The taxman said the first audit report filed by the party to it and the Election Commission, under the provisions of the Representation of People Act, were "incorrect and fabricated".

Details are awaited.

(With agency inputs)