Tax Evasion

J&K police probe 'tax evasion' by two educational institutes in Baramulla

Police have initiated a probe into the alleged tax evasion and Foreign Contribution (Regulation) Act (FCRA) irregularities by two educational institutions in Baramulla district of Jammu and Kashmir, officials said on Tuesday. The authorities have also registered a case against another educational institution under the Unlawful activities Prevention Act (UAPA). "Baramulla Police initiated inquiry into Al Huda and Salfia Educational Trusts in Baramulla over Tax evasion/FCRA irregularities & land issues. Probe ongoing," Baramulla police said in a post on its X handle. It said an FIR has been registered under the UAPA against Idarah Fallah-u-Darain society for alleged unlawful activities. "Raids conducted; detentions made & unauthorized donation boxes seized. Investigation ongoing to maintain peace & rule of law," the police added.

Uttarakhand GST raid uncovers tax evasion racket involving senior official

Officers of the Uttarakhand GST headquarters carried out a raid and unearthed a tax evasion racket worth over Rs 20 lakh several lakhs of rupees, allegedly run in collusion with joint commissioner-level officials. "The state tax headquarters had been constantly receiving information and complaints that transporters were bringing goods to Haldwani in the Kumaon region while evading taxes," a senior official from the headquarters said. "One of these transporters was also reported to have the patronage and support of a senior departmental officer at the level of joint commissioner," he said. Officials said that this hindered any major action against this transporter at the local level. The state GST headquarters, then, decided to take action against the transporters on its own. "Teams from Rudrapur raided two transport companies in Haldwani early this week," sources said. They added that in a highly confidential manner, under heavy police security, two departmental teams from outside

Volkswagen plans India restructuring amid tax row and EV ambitions

In an internal memo, Volkswagen India chief said the group is committed to India, with plans to invest in new technologies and manufacturing despite shifting markets and rising competition

Karnataka witnesses 5-fold jump in GST tax evasion at ₹39,577 cr in FY25

Central GST officers in Karnataka detected tax evasion of Rs 39,577 crore in 2024-25 fiscal year, an over 5-fold jump from the year-ago period, Parliament was informed on Monday. In a written reply in the Lok Sabha, Finance Minister Nirmala Sitharaman said "Central GST authorities have not issued any notices based on UPI transaction". The minister was replying to a question on whether the government has issued GST notices to small traders and street vendors in the country, including Karnataka, without assessment of their business activities. Last month, numerous small traders and shopkeepers in Bengaluru, Karnataka, received disproportionately high GST notices primarily based on digital footprints, such as UPI transactions. The notices were sent by State GST field offices. To another question on the details of GST evasion detected in Karnataka, Sitharaman shared the details of cases by the Central Tax formations pertaining to the state. In 2024-25, 1,254 cases involving Rs 39,577

GST evasion detection hits all-time high of ₹2.23 trillion in FY25

FM Nirmala Sitharaman urges faster probe closures and easier registrations

Unaccounted income invested in Virtual Digital Assets on CBDT radar

The Central Board Direct Taxes (CBDT) is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset (VDA) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification, sources said. As per the Section 115BBH of Income Tax Act, 1961 inserted by the Finance Act, 2022 a flat tax rate of 30 per cent (plus applicable surcharge and cess) on income from VDA transfer is applicable. The provision does not allow deduction of any expenses except cost of acquisition. Further, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources pointed out that data analytics has shown that a significant number of persons have violated provisions of Income Tax Act by not filing Schedule VDA of ITR and offering tax on the income earned

Global tax evasion fight: Why MNCs, HNIs still outsmart regulations

Multinationals and high-net-worth individuals (HNIs) dodge taxes in a variety of ways. The most common way for multinationals is through the transfer pricing mechanism

GST evasion of Rs 1.95 trn detected by CGST officers during April-January

As per the data shared in the Lok Sabha, the total number of GST evasion cases detected by central government officers in the last five years

ED seizes business jet at Hyderabad airport in money laundering case

The Enforcement Directorate has seized a business jet parked at the Hyderabad airport as part of a money laundering investigation against a Hyderabad-based company and its promoters who allegedly duped numerous investors in a Rs 850 crore Ponzi "scam", official sources said on Saturday. The money laundering case stems from a Cyberabad police FIR against Falcon Group (Capital Protection Force Pvt. Ltd.), its CMD Amar Deep Kumar and some others, the sources said. It is alleged that the Falcon Group "collected" Rs 1,700 crore from investors for high returns through a "fraudulent" invoice discounting investment scheme. Rs 850 crore, out of the total funds, was re-paid leaving a total of 6,979 investors unpaid, according to the sources. Kumar, the sources said, fled the country using this jet. He or his company could not be contacted immediately for a response on the charges. Officials from the ED's Hyderabad office found that the 8-seater business jet 'N935H Hawker 800A' (owned by a

I-T notices: High-value expenses must sync with bank withdrawals, e-txn

Tax experts say that when declared income is high but bank withdrawals are minimal, it raises concerns about unreported cash transactions

Tax department probes unlisted share transactions, tax evasion in OFS sales

I-T department's investigation wing has issued multiple notices to investors seeking details on how they determined the acquisition cost of unlisted shares and calculated capital gains

40,000 taxpayers under lens for deductions, CBDT targets TDS defaulters

The focus will be on habitual violators, cases showing significant gaps between tax deductions and advance tax payments, instances involving frequent revisions to deductee details

Google agrees to pay Italy $340 million to settle tax evasion investigation

Italian prosecutors on Wednesday said they are seeking to have a tax evasion investigation against Google dropped after the tech giant agreed to pay a 326 million Euro (USD 340 million) settlement. Milan prosecutors had opened an investigation against Google for failure to pay taxes on earnings in Italy from 2015-2019. The investigation focused on revenues from the sale of advertising, and cited the presence of servers and other infrastructure in Italy. Google did not immediately respond to a request for comment.

GST evasion of Rs 1.88 trn detected by CGST officers during April-Dec 2024

GST evasion of over Rs 1.88 lakh crore was detected by Central GST officers during April-December 2024, the Lok Sabha was informed on Monday. Minister of State for Finance Pankaj Chaudhary said GST evasion, including ITC fraud cases, in 72,393 cases between April and December stood at Rs 1.88 lakh crore. 132 arrests were made and recovery of Rs 20,128 crore was made during the period. In the 2023-24 fiscal, CGST officials detected GST evasion of Rs 2.30 lakh crore in 20,582 cases. Recovery of Rs 31,758 crore was made and 223 people were arrested. In 2022-23 and 2021-22, GST evasion of Rs 1.32 lakh crore and Rs 73,238 crore was detected by CGST officials, respectively. Under the Goods and Services Tax (GST), taxes are levied under four main slabs 5 per cent, 12 per cent, 18 per cent and 28 per cent. Three special rates of 3 per cent, 1.5 per cent and 0.25 per cent are applicable on gold, silver, diamond and jewellery; cut and polished diamonds and rough diamonds, ...

Govt issues notice to Kia for $155 mn tax evasion, company denies charges

Tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of Rs 1,350 crore

Here're the foreign companies embroiled in tax disputes with govt

NEW DELHI (Reuters) - Foreign companies have often struggled in India due to high tax demands related to duty evasion on imports or levies payable on big M&A transactions, leading to prolonged litigation at times.

Indian man gets 30-month prison term in US for customs duty evasion

An Indian man who ran jewellery companies in New York has been sentenced to 30 months in prison for evading customs duty for importing jewellery worth more than USD 13.5 million and for illegally processing over USD 10.3 million through an unlicensed money transmitting business, a US attorney said. Acting US Attorney Vikas Khanna said Monishkumar Kirankumar Doshi Shah (4O) of Mumbai and Jersey City, New Jersey, previously pleaded guilty before US District Judge Esther Salas to a two-count information, charging him with conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business. In addition to the prison term, the judge ordered restitution in the amount of USD 742,500 for the wire fraud scheme and forfeiture of USD 11,126,982.33 for the wire fraud and unlicensed money transmitting schemes. Additionally, the court imposed a two-year term of supervised release. According to court documents, from around December 2019

GST officers must provide written grounds of arrest under new guideline

The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo

ED conducts raids in Bengal over Rs 1,000 cr 'cyber fraud' in Tamil Nadu

Sleuths of the Enforcement Directorate (ED) started conducting raids at eight locations across West Bengal on Thursday in connection with its probe into cyber frauds involving over Rs 1,000 crore in Tamil Nadu, a senior officer said. Raids are underway simultaneously at five places in Park Street, Salt Lake, and Baguihati areas in Kolkata and in three other locations in districts, he said. During the raid in Salt Lake area, the ED sleuths detained a person for questioning, the officer said. "Our officers are now conducting raids at a flat in a high-end residential complex in Baguihati," he told PTI. Several people based in states in eastern India have been found involved in the crime, he added.

I-T dept refutes claims of crackdown on tax evaders using Digi Yatra data

The Income Tax department on Monday said it is not looking at Digi Yatra data to crack down on tax evaders. The I-T department in a post on X refuted reports which stated that Digi Yatra data will be used to crack down on tax evaders. "In this connection it is clarified that as on date there is no such move by the @IncomeTaxIndia department," it said on X. Based on Facial Recognition Technology (FRT), Digi Yatra provides for contactless, seamless movement of passengers at various check points at airports. The data shared by a passenger for Digi Yatra is stored in an encrypted format. For availing the service, a passenger has to register his or her details on the Digi Yatra app using Aadhaar-based validation and a self-image capture. In the next step, the boarding pass has to be scanned and the credentials are shared with the airport. Digi Yatra is managed by the Digi Yatra Foundation. Its shareholders are Airport Authority of India (AAI), Cochin International Airport Ltd (CIAL),