Rs 65 crore illegal income of Karnataka hair exporters detected

Income Tax raids on human hair exporters in Karnataka recently resulted in disclosure of Rs 65 crore and seizure of crores in cash and jewellery from them, said an official on Tuesday.

Published: 03rd January 2018 12:24 AM  |   Last Updated: 03rd January 2018 12:24 AM   |  A+A-

By ANI

BENGALURU: Income Tax raids on human hair exporters in Karnataka recently resulted in disclosure of Rs 65 crore and seizure of crores in cash and jewellery from them, said an official on Tuesday.

"Tax evasion even on income from hair offered by devotees in temples was found by our investigation directorate teams," said Joint Director G. Ramesh in a statement here.

The tax sleuths raided hair exporters in the state and seized Rs 2.5 crore in cash, jewellery valued at Rs 5 crore and 140kg silver from their residences. 

"Inmates of women's hostels in the state were also found to be in the business of cutting their long locks and selling them to earn easy money," said Ramesh.

Besides from temples, the exporters bought human hair from beauty parlours and shipped it to Africa and European countries where fascination for dry hair is high for weaves, wigs and extensions.

The dry hair market worldwide was estimated to be a whopping $6 billion (Rs 38,400 crore) in 2015.

"The search teams also found evidence of tax evasion by the hair exporters for many years," said Ramesh.

For instance, exporters did not account for second quality sales and wastage sales and have not declared income on them in their income tax returns.

"The Directorate General of the Income Tax in the Karnataka-Goa region is carrying further investigation to ascertain tax evasion by the exporetrs," added Ramesh.

Stay up to date on all the latest Karnataka news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.