Key Points
The income tax (I-T) department has completed its investigation into alleged malpractices in the payment of commissions by insurance companies and uncovered evasion of more than 15,000 crore, said people with knowledge of the matter..
The probe, which covered more than 25 insurers and over 250 businesses used to route commissions to agents, was conducted by the department's investigation wing..
While the DGGI was probing them for fake input tax credit (ITC) claims, the tax department was investigating alleged tax evasion in violation of Insurance Regulatory and Development Authority of India (IRDAI) norms...
The industry is of the view that the actions by the DGGI and the I-T department are unjust and the commission issue is a matter of legal interpretation, the person said...
"During the course of the probe, the statements of these employees were recorded and they have revealed that their job was to ensure that the overriding commission is paid through various routes and these transactions look genuine, incurred either through payroll costs or marketing and advertising expenditures," said the person..
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