The income tax department of Mumbai has exposed a scam of Rs. 3200 crore, where 447 companies used the deducted tax of employees to accomplish their business interest. The fraud involves prominent sector of our society, mainly comprise a builder, a politically connected, he has misled his employees and collected 100 crores from them to attain his business purpose. The other offenders are from movie production houses, infrastructure companies, start-ups and fly by night operators.
According to sources, an MNC of IT solution has not deposited Rs. 11 crore. An infrastructure company has diverted 14 crores, part of a port development
The TDS section of I-T has started investigations against these companies and some warrants have been issued. An inquiry has been started under Section 276 B. As per Income Tax Act, the convict will receive a minimum punishment of imprisonment of three months to seven years.
These organizations are under a legal investigation under the Income Tax Act to deduct TDS on behalf of the government. I-T has initiated actions by attacking the bank accounts besides movable and immovable assets. A source said. “In several of the cases, they diverted the money towards working capital. Some apologized and made believe to pay while some said they could not pay because of the adverse market condition.