Government hunts down more shell firms and deactivates PAN cards of tax evaders

by Sathishbabu Raghav Financial Adviser

Income Tax sources say that out of the 1.1 million permanent account numbers (PAN) hat have been deactivated by the government last month, a majority were duplicates and were being used to launch share-trading and demat accounts, operate in shell firms, and transact on the stock markets. The IT department has found out that one individual could have owned 6 to 7 PAN cards, each carrying the name of the holder with a slightly different spelling. According to IT professionals, people like these have been identified as small and medium-sized stock brokers, sub-brokers and their clients have not paid taxes.

They could have escaped from paying taxes by using one card for filing tax returns and others for investing in financial instruments or making high-value transactions, said a senior tax official. Transactions with high value of more than Rs.50,000 and above require PAN details. At the time of demonetization, PAN was needed to be quoted in the case of cash deposits of more than Rs.2 lakh in the savings accounts.

The drive that has continued since demonetization, at the time of which the department compared the databases of third parties such as banks and financial institutions with its own database and other information like know your customer (KYC), tax deducted at source (TDS), and payments made overseas.

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About Sathishbabu Raghav Innovator   Financial Adviser

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Joined APSense since, January 13th, 2015, From Bangalore, India.

Created on Sep 1st 2017 05:54. Viewed 546 times.


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