Income Tax Dept Raids on contractors in Bengaluru

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An important news for taxpayers: start ITR Filing on time and in the correct manner otherwise face grave situations. The Income Tax Department is getting stringent on tax dodgers as well as tax fraudsters. Recently, the Income Tax Department conducted raids on Contractors in Bengaluru. In this article, we will read the highlights of  Income Tax Dept raids on contractors in Bengaluru.

What is ITR Filing?

An income tax return is a document that a person uses to report his or her earnings, spending, tax deductions, investments, and taxes, among other things to the government. The Income Tax Act of 1961 makes it necessary for a taxpayer to file an income tax return under a variety of situations.

For example, a taxpayer may desire to submit an income tax return to record his income for the year, carry along losses, claim a tax refund, and claim tax benefits, etc. The income tax portal provides facilities to file Income tax returns online and it is known as ITR Filing.

Read the detailed guide at – Step by Step Guide to file Income Tax Returns online & offline

Key Highlights of Income Tax Dept raids on contractors in Bengaluru

  • The Income Tax Department conducted search and seizure operations against three large contractors located in Bengaluru who were involved in the implementation of irrigation and roadway projects. The inspections, which began on October 7, 2021, have been conducted at 47 locations scattered over four states.
  • During the search, it was discovered that these three organizations were involved in income suppressing by making fake purchases, inflating labor expenditures, and logging fraudulent subcontract expenses, among other things. The inquiry found that one of the organizations had booked false sub-contract expenditures in the names of approximately 40 people with no resources and unrelated to the construction industry. When questioned, these people acknowledged the alleged falsification.

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  • One of the organizations confessed to inflating labour expenditures to the tune of Rs. 382 crore. Furthermore, another group was discovered to have received lodging applications from non-existent paper firms amounting to Rs. 105 crore, that this group admits.
  • Various damning evidence in the shape of physical papers, virtual evidence, and so on have been discovered and confiscated. Unaccounted cash worth Rs. 4.69 crore, unaccounted jewels, and gold worth Rs. 8.67 crore, and silver items worth Rs. 29.83 lakh were confiscated during the raid.

Furthermore, more raids and investigations are in progress.

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Moreover, If you want any other guidance relating to ITR  Filling, please feel free to talk to our business advisors at 8881-069-069.

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