Tax raids are underway at more than 100 premises across India in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh and Haryana among other states.
Many big businesses and individuals are now on the radar of the Income Tax Department (Representational)
Several Registered Unrecognized Political Parties (RUPPs) across the country are being raided by Income Tax officials for allegedly duping the national exchequer of crores of tax money. A coordinated action was initiated by the department against some RUPPs, their promoters and related entities to probe the source of their income and expenditure, news agency PTI quoted sources as saying.
Raids are underway at more than 100 premises across India in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, Chhattisgarh and Haryana among other states.
The Election Commission of India initiated action after small political parties accepted donations and then provided entries for tax deductions to donors. In this way, the money that comes in the form of donation goes back to the donor in cash after deducting the tax.
Political parties accept money from patrons through admission operators who return a large percentage of the money after deducting a small percentage and tax. In this way, the national exchequer is cheated and crores of rupees worth of taxes are duped, officials told India Today TV.
He said many large businesses and high value individuals managed to take advantage of tax deductions in this way and are now on the agency’s radar.
After the completion of the search and seizure, a report will be prepared and notices will be issued to the concerned institutions and people seeking clarification.
Legal action will be initiated by the Income Tax Department after a report is prepared.
Also read: | Maharashtra businessman arrested for availing input tax credit of over Rs 40 crore
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