Moneycontrol
Sep 15, 2017 03:28 PM IST | Source: Moneycontrol.com

Modi-led government promises to go after companies indulging in tax evasion

Prime Minister Narendra Modi has said that companies helping in hiding black money will face resistance from the government and strict actions will be taken against such firms.

Modi-led government promises to go after companies indulging in tax evasion

Moneycontrol News

Prime Minister Narendra Modi is leaving no stone unturned to make India corruption free. In his latest attempt, Modi plans to go after companies helping in hiding black money, reports Mint.

Centre is planning to take stringent actions against such firms in an effort to lay a roadmap for ‘New India’ by 2022.

While addressing the foundation day function of Institute of Chartered Accountants of India (ICAI) on Saturday, Modi said, “Government has cancelled registration of over 1 lakh companies and more than 37,000 shell firms have been identified for strong action… If you know anyone with black money, warn them that they would not be spared.”

Stepping up its fight against shell companies, government cancelled registration of around 210,000 companies. Besides, banks have been asked to restrict operations of these companies' bank accounts by their directors or their authorised representatives.

“The impact of our steps to check black money is clear from the latest figures of Swiss Banks, where Indians’ money has dipped to record low….there has been 45 percent fall whereas according to their 2013 reports, there was 42 percent rise,” Modi said.

While addressing an Indian diaspora in Myanmar, Modi justified demonetisation which has come in for criticism, asserting that his government was not afraid of taking 'big' and 'tough' decisions in the interest of the country.

As per the available data post demonetisation, over 3 lakh registered companies indulged in suspected dealings, he added.

Referring to the note ban, the prime minister said the step was taken to curb black money and that it had helped to identify lakhs of people who had crores of rupees in bank accounts but never paid income tax.

On the Goods & Services Tax (GST), Modi said that an “atmosphere of doing business with honesty” had been created in the country within a span of two months after its launch.

Modi said over the last three years, his government had initiated massive changes and rules were being eased to unshackle the potential of the country. “Now, the people of the country have begun believing that India can move forward. The shackles can be broken,” he said.

(With inputs from PTI)
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