The Income Tax Department has completed the investigation into the allegations of tax evasion against insurance companies. In the investigation, the department has found irregularities in the payment of commission by insurance companies and tax evasion of thousands of crores of rupees has also been found. In a report by ET, quoting Income Tax officials, it has been told that in the investigation, information has been found to hide the payment of more than 15 thousand crore rupees. On top of this, a tax liability of about Rs 4,500 crore can be made. The investigation has also revealed the methods being adopted by the insurance companies to evade tax.
The scope of the investigation includes: More than 100 insurance companies and more than 250 businesses were involved. In the investigation conducted by the Investigation Wing of the Income Tax Department, it has been found that these businesses were being used to pass on the commission to the agents. The information found in the investigation has been conveyed to the Assessing Officer.
Assessing Officer will demand
The companies involved in this case of tax evasion to the Assessing Officer, the total amount and tax evasion The method has been described in detail. The Assessing Officer will now issue tax demand to the concerned companies after looking into the entire matter. Interest and penalty will also be included in the tax demand.
DGGI also investigated
Apart from the Income Tax Department, the Directorate General of GST Vigilance i.e. DGGI has also investigated the concerned insurance companies. The Income Tax Department was probing alleged tax evasion in violation of provisions of insurance regulator IRDA, while the DGGI was probing bogus input tax credit claims.
GST found so many crore
DGGI has issued show cause notices to 30 companies since March and asked them to pay GST of over Rs 4,000 crore. The companies have also paid about Rs 700 crore so far. At the same time, companies are also preparing to appeal against the action of DGGI to the competent authority.
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