Govt sends notices to 200,000 companies over tax non-compliance

Out of the 1.5 million registered companies, only 600,000 were found to file their returns

The Ministry of Corporate Affairs (MCA) on Saturday sent notices to around 200,000 inoperative companies, ordering them to terminate operations and de-register themselves from MCA.

The decision comes after these companies lagged behind in filing annual returns for several years.

During the demonetisation phase, the Income-tax department and the Enforcement Directorate revealed the involvement of certain shell companies in converting black money into white through their accounts.

Prime Minister's Office (PMO), had consequently, set up a task force under the chairmanship of the Revenue Secretary Hasmukh Adhia to monitor the activities of these shell companies.

"Total 1.5 million companies are registered with the MCA. Out of them, 600,000 companies are filling Income tax return while the rest pose a potential threat of indulging in money laundering. The PMO has setup a task force to monitor shell companies. We are going to monitor every 15 days," said Adhia.