Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 21st December, 2021

PRESS RELEASE

Income Tax Department conducts searchesin Uttar Pradesh and Karnataka

The Income Tax Department carried out search and seizure operationon 18.12.2021on various persons and their business entities, engaged in the business of civil construction and real estate and running educational institutes in UP and Karnataka. A Kolkata based entry operator has also been covered in the search operation.

The search action covered more than 30 premises spread over various locations including Lucknow, Mainpuri, Mau, Kolkata, Bengaluru and NCR. Large number of incriminating evidences including hard copy documents and digital data have been found and seized during the search. Preliminary analysis of the same has revealed the following modus-operandi of tax evasion:

1. It was found that several entities, engaged in the business of civil construction, were involved in claiming of bogus expenditure running into crores of rupees. Various incriminating documents including blank bill books, stamps, signed cheque books of bogus suppliers have been found and seized. In case of one company, undisclosed income of over Rs. 86 crore of the directors of the company has been detected. Out of it, the person concerned has admitted a sum of Rs. 68 crore as his undisclosed income and offered to pay tax thereon. In the case of a proprietary concern, books of accounts relating to its turnover exceeding Rs. 150 crore during the last few years could not be produced. In another concern, it was detected that it used the conduit of shell companies to route its unexplained income and investments.Such unexplained investment to the tune of Rs. 12 crore has been identified. In case of another person, unexplained investment of Rs. 11 crore in a shell company and investments in benami properties worth Rs. 3.5 crore have been identified.
2. Further, a Kolkata based accommodation entry provider was also covered in connection with providing accommodation entries to these persons. It was found that the entry operator formed various shell companies to provide accommodation entries of bogus share capital to the tune of Rs. 408 crore and bogus unsecured loan of Rs. 154 crore through these shell companies. Substantial amount of digital data evidencing hawala transactions has also been found & seized during the search operation. The entry operator has admitted to the above modus-operandi, and also disclosed unaccounted commission income of Rs. 5 crore.
3. In respect of a Bengaluru based Trust and its related entities covered in the search action, it is revealed that substantial amounts of trust funds amounting to Rs. 80 lakh have been transferred, in the guise of donation, for non-trust purposes, to certain Kerala based entities including Markazu Saquafathi Ssunniyya Trust and Markaz Knowledge City Trust, connected with Gulf countries, for the personal benefit of the trustees. This, prima-facie indicates violation of relevant provisions relating to registration of trusts under the Income-tax Act, 1961 for claim of exemption, as well as, FEMA provisions. Evidences with regard to collection of capitation fee of about Rs. 10 crore in cash, and expenses to the tune of over Rs. 4.8 crore incurred from the account of the Trust, for the trustees’ personal benefit, over the last 3 years, have also been gathered.

The search action has resulted in seizure of unaccounted cash of Rs.1.12 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 17th December, 2021

PRESS RELEASE

Advance Tax collections for the F.Y. 2021-22 (Till 3rd Installment) stand at Rs. 4,59,917.10 crore as on 16.12.2021 which shows a growth of approximately 53.50%

Net Direct Tax collections for the F.Y. 2021-22 have grown at a robust pace at more than 60%

Refunds aggregating to Rs. 1,35,093.6 crore have been issued in the current fiscal

The figures of Direct Tax collections for the Financial Year 2021-22, as on 16.12.2021 show that net collections are at Rs. 9,45,276.6 crore compared to Rs. 5,87,702.9 crore over the corresponding period of the preceding financial year i.e FY 2020-21, representing an increase of 60.8%. The net collection (as on 16.12.2021) in FY 2021-22 has registered a growth of 40% over the corresponding period of FY 2019-20 when the net collection was Rs. 6,75,409.5 crore, and a growth of 40.93% over the corresponding period of FY 2018-19 when the net collection was Rs. 6,70,739.1 crore.

The Net Direct Tax collection of Rs. 9,45,276.6 crore (as on 16.12.2021) include Corporation Tax (CIT) at Rs. 5,15,870.5 crore (net of refund) and Personal Income Tax (PIT) including Security Transaction Tax (STT) at Rs. 4,29,406.1 crore (net of refund).

The gross collection of Direct Taxes (before adjusting for refunds) for the F.Y. 2021-22 (as on 16.12.2021) stands at Rs. 10,80,370.2 crore compared to Rs. 7,33,715.2 crore in the corresponding period of the preceding financial year.The gross collection for the F.Y. 2019-20 was Rs. 8,34,398 crore and that for F.Y. 2018-19 was Rs. 7,96,342 crore in the corresponding period.

The gross collection of Rs. 10,80,370.2 crore includes Corporation Tax (CIT) at Rs. 6,05,652.6 crore and Personal Income Tax (PIT) including Security Transaction Tax(STT) at Rs. 4,74,717.6 crore. Minor head wise collection (as on 16.12.2021) comprises Advance Tax of Rs. 4,59,917.1 crore, Tax Deducted at Source of Rs.4,93,171.7 crore, Self-Assessment Tax of Rs. 74,336.2 crore; Regular Assessment Tax of Rs. 44,028.7 crore; Dividend Distribution Tax of Rs. 6,525.9 crore and Tax under other minor heads of Rs. 2390.6 crore.

The cumulative Advance Tax collections for the first, second and third quarter of the F.Y. 2021-22 stand at Rs. 4,59,917.1 crore as on 16.12.21, against Advance Tax collections of Rs. 2,99,620.5 crore for the corresponding period of the immediately preceding Financial Year i.e 2020-21, showing a growth of 53.5%(approx). Further, the cumulative Advance tax collection of Rs. 4,59,917.1 crore as on 16.12.2021 (FY 2021-22) shows a growth of 44.21% over the corresponding period in FY 2019-20 when the advance tax collection(cumulative) was Rs 3,18,929.4 crore and a growth of 49.76 % over the corresponding period in FY 2018-19 when the advance tax collection(cumulative) was Rs 3,07,096.3 crore.

The Advance tax figure of Rs 4,59,917.1 crore as on 16.12.2021 comprises Corporation Tax (CIT) at Rs. 3,49,045.4 crore and Personal Income Tax (PIT) at Rs. 1,10,871.7 crore. This amount is expected to increase as further information is awaited from Banks.

Refunds amounting to Rs. 1,35,093.6 crore have also been issued in the F.Y. 2021-22 so far.

(SurabhiAhluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

Ministry of Finance

India and USA agree on a transitional approach on Equalisation Levy 2020

Dated: 24 NOV 2021

On October 8, 2021, India and United States joined 134 other members of the OECD/G20 Inclusive Framework (including Austria, France, Italy, Spain, and the United Kingdom) in reaching agreement on the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy.

On October 21, 2021, the United States AND Austria, France, Italy, Spain, and the United Kingdom reached an agreement on a transitional approach to existing Unilateral Measures while implementing Pillar 1. The agreement is reflected in the joint statement that was issued by those six countries on that date (“October 21 Joint Statement”).

India and United States have agreed that the same terms that apply under the October 21 Joint Statement shall apply between the United States and India with respect to India’s charge of 2% equalisation levy on e-commerce supply of services and the United States’ trade action regarding the said Equalisation Levy. However, the interim period that will be applicable will be from 1st April 2022 till implementation of Pillar One or 31st March 2024, whichever is earlier.

India and United States will remain in close contact to ensure that there is a common understanding of the respective commitments and endeavor to resolve any further differences of views on this matter through constructive dialogue.

The final terms of the Agreement shall be finalised by 1st February 2022.

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RM/KMN

(Release ID: 1774692) 

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 21st November, 2021

PRESS RELEASE

Income Tax Department conducts searches in Gujarat

The Income Tax Department has carried out a search and seizure operation on a prominent group engaged in manufacturing of chemicals and development of real estate on 18.11.2021. The search action covered more than 20 premises spread over Vapi and Sarigam in Gujarat, Silvassa and also in Mumbai.

A large number of incriminating evidences in the form of documents, diary notings and digital data showing earning of huge unaccounted income by the group and its investment in assets have been found and seized. The evidences clearly indicate evasion of taxable income by adopting various modus-operandi such as suppression of production, use of bogus purchase invoices without actual delivery of the goods to inflate purchases, availing of bogus GST credit, claim of bogus commission expenses, etc.  The assessee group has also received on-money in immovable property transactions. All these have resulted into generation of unaccounted cash. During the search proceedings, several incriminating evidences about cash transactions in investment in immovable properties and cash loans have also been seized.

The search operation has resulted in seizure of unaccounted cash of about Rs. 2.5 crore and jewellery of Rs. 1 crore. 16 bank lockers have been placed under restraint.

A preliminary analysis of the documents/evidence unearthed during the search has indicated that estimation of unaccounted income is likely to be more than Rs.100 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 18th November, 2021

PRESS RELEASE

Income Tax Department conducts searches in West Bengal

The Income Tax Department carried out search and seizure operations on 16.11.2021 on a prominent Kolkata based group engaged in manufacturing of cement and real estate. The search action covered 24 premises spread over Kolkata, Delhi and places in the states of Assam and Meghalaya.

A large number of incriminating evidences in the form of documents and digital data showing evasion of huge amount of unaccounted income of the group have been found and seized. These evidences indicate evasion of taxable income adopting various malpractices such as, suppression of production, unaccounted and under-invoicing of sales, inflation of cost of purchases using bogus parties and unaccounted expenditure incurred in cash. Evidence of receipt of on-money in cash on sale of flats, by a group concern, has also been unearthed. Further analysis of seized evidences reveals that many paper companies are run by the group to provide accommodation entries to its flagship concern.

During the search proceedings, incriminating evidences containing transaction of unexplained unsecured loans, bogus commission paid, and unsubstantiated share capital and share premium received through shell companies, have also been found and seized.

Firms of the group were also found to be run in the names of persons/employees who are persons of small means. While these employees were earning meagre salaries, payments running into crores of rupees were being made to such firms.  These firms are found to be operating from the factory premise of the group. 

The search action has resulted in seizure of unaccounted cash of Rs. 1.30 crore. 6 bank lockers have been placed under restraint. The search action, so far, has led to detection of total unaccounted income around Rs. 200 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT