I-T raids in Bengaluru reveal Rs 880 crore of concealed income
The Income Tax department has unearthed concealed income of Rs 880 crore during raids on a leading manpower services provider in Bengaluru.
New Delhi: The Income Tax department has unearthed concealed income of Rs 880 crore during raids on a leading manpower services provider in Bengaluru.
The survey operation was conducted on July 8 in two business premises of the company, said a Finance Ministry statement. The ministry, however, did not divulge the name of the company concerned.
It added that the assessee has been claiming huge deduction u/s 80JJAA of Income-tax Act, 1961 which incentivises new employment generation, subject to fulfilment of certain conditions such as emoluments paid to the employee (which should be less than Rs 25,000 per month) and number of days of employment, among others.
During the course of the survey operation, evidence of tax evasion has been gathered regarding wrongful claims of deduction u/s 80JJAA of Income-tax Act, 1961.
The investigations further revealed, that, even though the emoluments of new employees added were more than Rs 25,000 per month, the assessee has been wrongfully claiming deduction u/s 80JJAA by excluding certain components of emoluments of such employees to fit into the eligible emoluments limit of Rs 25,000 per month.
Further, it has been found that deduction u/s 80JJAA has been claimed in subsequent years, even though certain eligible employees were no longer on the payroll of the assessee.
Overall, the survey has resulted in detection of concealment of income to the tune of Rs 880 crore spread over various assessment years, the statement said.