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IT dept to share vital data with MCA to nail down shell companies

MCA cancelled registrations of over 1.62 lakh firms for non-filing of financial statements

Press Trust of India  |  New Delhi 

IT dept to share vital data with MCA to nail down shell companies

The tax authorities will now relay audit reports of corporates and specific information from their I-T returns as also data to the ministry of corporate affairs, as the government plans to crack down harder on

Coming down heavily on shell companies, the Ministry of Corporate Affairs (MCA) has already cancelled registrations of over 1.62 lakh companies for non-filing of financial statements for the immediate two preceding fiscals.


The Central Board of Direct Taxes (CBDT), the apex policy making body of the I-T department, in an order, has asked the Principal Director General of Income Tax (Systems) to "bulk information" to the

The bulk information would mean Permanent Account Number (PAN) data of corporates, their Income Tax returns (ITRs), audit reports and statement of financial transactions (SFT) received from banks relating to corporates.

Also, the tax department would identified Challan Identification Number (CIN)as well as Director identification number (DIN) with the

The (RoCs) has removed 1,62,618 companies from the register as on July 12, 2017, after following the due process under Section 248 of the Companies Act, 2013.

Section 248 provides powers to the to remove the name of a company from the register on various grounds including not carrying out any business for two preceding financial years.

Out of the 1,62,618 companies that have been struck-off the register, the registration of 33,000 was cancelled by (Mumbai).

Among others, (Delhi) has deleted 22,863 companies from the register and 20,588 firms were deregistered by (Hyderabad).

To facilitate the process of furnishing information, would enter into a Memorandum of Understanding (MoU) with to detail "the mode of transfer of data, maintenance of confidentiality, mechanism for the safe preservation of data, weeding it out after usage and information which shall be furnished by to Income-tax Department.

"The frequency and time line for furnishing information shall be decided by Principal Director General of Income-tax (Systems) in consultation with and included in the said MoU.

First Published: Thu, July 27 2017. 16:21 IST
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