IT department surveys Bengaluru company; detects Rs. 880cr hidden income
What's the story
The Income Tax Department has detected "concealment" of Rs. 880 crore income after it surveyed the Bengaluru premises of a leading manpower service providing company, the Central Board of Direct Taxes (CBDT) said on Tuesday. The identity of the company was not available immediately. The survey was carried out on July 8 at two premises of the company.
Income Tax Act, 1961
The assessee has been claiming huge deduction: CBDT
"The assessee has been claiming huge deduction under Section 80JJAA of the Income Tax Act, 1961," the CBDT said in a statement issued. "The Act incentivizes new employment generation, subject to fulfillment 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, etc," it added.
Information
CBDT forms policy for the tax department
"Overall, the survey has resulted in detection of concealment of income to the tune of Rs. 880 crore spread over various assessment years," CBDT added. The CBDT frames policy for the tax department.
Eligibility
'Assessee excluded certain components to fit into eligible emoluments limit'
It said the survey operation, a surprise action where the taxman visits only the business premises of an assessee, found that "even though the emoluments of new employees added were over Rs. 25,000/month, the assessee has been wrongfully claiming deduction under Section 80JJAA. "The assessee has been excluding certain components of emoluments of such employees to fit into the eligible emoluments limit," it added.
Information
Certain eligible employees are no longer on payroll
The CBDT claimed it was found that "deduction under Section 80JJAA has been claimed in subsequent years, even though certain eligible employees were no longer on the payroll of the assessee."