Income Tax department unearths TDS scam worth Rs 3,200 crore

As much as Rs 3,200 crore-worth tax deducted at source of employees working for 447 companies was redirected as working capital.

Published: 05th March 2018 07:11 PM  |   Last Updated: 05th March 2018 07:11 PM   |  A+A-

For representational purposes (File | Reuters)

By Express News Service

MUMBAI: As much as Rs 3,200 crore-worth tax deducted at source (TDS) of employees working for 447 companies was redirected as working capital, found the I-T deparment.

The anomalies between the tax deducted and tax deposited with the government were traced during an investigation between April 2017 and March 2018 after which the TDS wing of the I-T initiated prosecution against these firms and issued warrants in some cases.

Under the Income Tax Act, the offence attracts a minimum of rigorous imprisonment of three months to a maximum of seven years with fine. While the prosecution is initiated under Section 276 B, the I-T department is contemplating adding IPC sections of cheating and criminal breach of trust, sources said.

The offenders mainly include builders including a leading and politically businessman who diverted Rs 100 crore. Others are from various sectors, including movie production houses, infrastructure companies, start-ups and fly-by-night operators.

An infrastructure company, part of a port development company diverted Rs 14 crore, while an MNC which provides IT solutions has not yet deposited Rs 11 crore, sources said.

Recovery, too, has been initiated by attaching bank accounts besides movable and immovable assets, a source said.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

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.

flipboard facebook twitter whatsapp