Income Tax Probe into US Embassy School

Published: 10th February 2014 07:19 AM  |   Last Updated: 10th February 2014 07:19 AM   |  A+A-

Even as the American Embassy school has not provided all the information on its employees, the Income Tax department has started a ‘discreet’ probe into the alleged tax violations which came to the fore as part of a slew of retaliatory measures initiated by the External Affairs Ministry following the arrest of the Indian diplomat in the US.

The Income Tax  department’s exemption wing which deals with issues related to waivers has reportedly begun a ‘discreet probe’ into the financial dealings of the school.

The External Affairs Ministry, meanwhile, is awaiting response from the school on the visa details and employment records of the school, as well as the bank account details.

As per the 1973 agreement, India had given tax exempted status only to a limited number of employees. It is however learned that spouses of several of the teachers are also employed, but not shown on the rolls, thereby not paying any taxes to the Indian exchequer.

The government has earlier indicated that these violation were serious and it was likely to initiate action in this regard.

The Ministry had raked up the issue following the arrest of Devyani Khobragade on December 12 on charges of visa fraud.


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