Key Points
New Delhi: Insurance companies and their intermediaries allegedly evaded nearly 30,000 crore in income tax since July 1, 2017 (since inception of GST) by suppressing income and showing fake expenditure, according to an internal income tax department assessment...
The department is in the process of sending tax demand notices to these entities to recover the dues, people aware of the details told ET..
Last year, the income tax department initiated a probe, together with the Directorate General of GST Intelligence (DGGI), after discovering that some insurance firms were circumventing regulations on commissions, paying more than what is permitted to agents and intermediaries..
The DGGI was looking into instances of insurers claiming input tax credit without the underlying supply of goods and services, allegedly using fake invoices provided by intermediaries..
"This was a joint probe and an example of data sharing which we did with the DGGI, which backed the probe with data and evidence," he said.. ET reported in August that the income tax probe was almost over, and the findings were being shared with the respective jurisdiction and the assessing officers...
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