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The party also said the Prime Minister Narendra Modi has created an "artificial drought" in the country and demonetisation is a "panic strike" on the people of the country.
"The Income Tax amendment bill will deprive the income of the States to the extent of 50 per cent. Cess will not go back to the states. It is a big assault on the economy in this country. It is nothing but unleashing the tax terrorism on the entire country. It is a big assault on the federal economy of this country.
"This is total assault on the economy, total assault on the farmers, total assault on the day to day life of a commoner," said Congress leader M. Veerappa Moily.
Blaming Modi for creating an "artificial drought" in the country, the former Union Minister said: "Demonetisation is done normally in a country when there is either a high inflation or when there is instability in economy in the country.
Both the pre-requisites are just not available in this case, even after last 2 consecutive droughts, but the Prime Minister has created an artificial drought in the country."
He further said the finance ministry feels that the GDP will be 5.5 per cent as against 7.5 per cent which they had expected.
"Next three years GDP will fall when the country was picking up, the economy was to become vibrant, the farming sector just picking up after the two years of consecutive draughts, but a panic button is pressed by the Prime Minister of the country," said Moily.
"It is a jobless economy. There is no investment for industries, it might collapse," he added.
"This cannot be considered as a money Bill. In addition to tax surcharge and penalty, the declarants have to deposit 25 per cent of the undisclosed income in a deposit scheme to be notified by the central government," he said.
"They (the Modi goverment) want to subvert the Parliament. They have already demolished some of the institutions. They have practically demolished the RBI, 'Niti Aayog' is only Aayog and no Niti, they are now demolishing even Parliament. They are intolerant to the utmost extent," he alleged.