The British Broadcasting Company (BBC) has acknowledged that it may have paid lower taxes than its liability, as reported by Hindustan Times.
The BBC has sent an email to the Central Board of Direct Taxes confessing that it underreported Rs 40 crore of income in its tax returns, HT reported.
The broadcaster is now required to file revised returns and settle outstanding dues, penalties, and interest.
Tax surveys were carried out at BBC offices in Delhi and Mumbai by the Income Tax Department in February. In its statement following the action, the Central Board of Direct Taxes (CBDT) said it had found discrepancies and that the income and profits disclosed by the organisation's units were "not commensurate with the scale of operations in India".
In the wake of the action, the British government strongly defended the BBC and its editorial freedom in Parliament saying: "We stand up for the BBC. We fund the BBC. We think the BBC World Service is vital."
The BBC had in January released the documentary film titled 'India: The Modi Question," which features the Gujarat riots of 2002. The film caused controversy for alluding to the leadership of Modi as chief minister during the riots while disregarding the clean chit given by the Supreme Court.