I-T Dept sends notices to 300 PE firms, promoters over Rs 4,200 crore tax evasion: Report

According to the report, the department has identified an estimated Rs 4,200 crore in evaded taxes from profits booked between 2021 and 2024.

The income-tax department has issued notices to approximately 300 private equity firms and promoters over alleged non-payment or underpayment of capital gains tax, the Economic Times reported.

This action is part of a larger effort to curb tax evasion and avoidance, leveraging data analytics based on information gathered from various financial reporting entities, a senior official told the Economic Times.

The department has only targeted cases where it suspects intentional evasion. "Notices were sent based on the department's available data, and some recipients have responded positively by agreeing to file revised returns," the official said.

According to the report, the department has identified an estimated Rs 4,200 crore in evaded taxes from profits booked between 2021 and 2024. Most investments linked to these cases were in real estate companies, startups, fintech firms, electric vehicle (EV) ventures, and solar equipment businesses. The evasion methods reportedly involved offer-for-sale transactions, cash dealings, gold, property, and crypto assets held in overseas accounts.

Citing an example, an official described an investor in an EV company who sold 8 percent of their stake in four separate transactions but failed to pay capital gains tax. The evasion was flagged when the individual purchased two luxury cars and booked two upscale apartments in the names of their minor children, the official added.

Moneycontrol could not independently verify the report.