Shell companies on Tax Department's radar

MCA has already cancelled the registrations of over 1.62 lakh companies for their failure to file financial statements for the immediate two preceding fiscals.

After the Ministry of Corporate Affairs (MCA) came down heavily on shell companies, the tax authorities have now decided to relay audit reports of corporates and specific information from their I-T returns along with PAN data to MCA, as per a PTI report.

It is worth mentioning here that the MCA has already cancelled the registrations of over 1.62 lakh companies for their failure to file financial statements for the immediate two preceding fiscals.

Close to 9 lakh registered companies are not filing annual returns with the MCA and “are a potential source of money laundering”, Revenue Secretary Hasmukh Adhia said early this year. "After registering (with the MCA), if companies do not file their return to the MCA, then there is no reason for us to let such companies operate in India. They become a potential threat. That is one strategy that we are working on," he was quoted as saying.

The Central Board of Direct Taxes (CBDT) in an order has asked the Principal Director General of Income Tax (Systems) to share “bulk information” to the MCA.

This means that information like the PAN data of corporates, their Income Tax returns (ITRs), audit reports and statement of financial transactions (SFT) received from banks relating to corporates could be shared, the report added.

Source: PTI

Add new comment