Action against these entities, which might be the first layer of suspicious transactions, is being launched with notices being sent out. The clean-up operation follows the earlier exercise where potential shell companies were scanned and directors were found fake. Many of these companies were struck off the rolls.
This is the first time the government is matching income tax and GST returns and initial findings have pointed to overstatement of GST claims and understatement of income in tax returns, officials told TOI. The action against such entities might be tough with the Supreme Court recently refusing to protect GST violators from arrest.
Data analytics is seen to be the core focus of the revenue department in the coming months as some of the analysis has also pointed to misreporting on the customs front. For instance, some traders have shown inflated imports, remitted funds overseas beyond the requirement and then claimed exports. But the exports proceeds are not reflected in the income tax returns.
“So far, various tax agencies were working in silos but now it’s possible to tally data and go after evaders,” explained an official, adding that thousands of companies were identified based on preliminary data mapping. With the BJP campaign stressing the government’s action against corruption, the revenu ..
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