Black money: I-T department goes after firms issuing fake invoices

Tax officials have now started scrutinising firms that help create black money by providing fake invoices to companies.

Close on the heels of raids on benami property and large cash deposits during demonetisation, tax officials have now started scrutinising firms that help create black money by providing fake invoices to companies.

According to an ET report, the Income Tax (I-T) department is questioning New Delhi- and Mumbai-based firms or entry operators after big data analytics raised red flags on the invoices of some companies.

The data analytics tool was recently introduced by the tax department to sift through a maze of data including bank accounts, phone records, credit card and PAN details, tax returns and social media platforms.

Tax officials were able to uncover the culprits as the data showed that one set of firms had provided a host of goods and services to companies in different sectors. But when they made an official visit to these firms, they found that they were merely operators issuing fake invoices to companies.

Source: ET


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