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Last Updated : Mar 22, 2017 01:34 PM IST | Source:

I-T dept detects undisclosed money worth Rs 10,000 crore in Mumbai

The department expects that 50 percent of the money will fall in the tax evasion category after scrutiny.

The income tax department has detected more than Rs 10,000 crore of undisclosed money in the Mumbai region during the current financial year, a 15-20 percent increase over the previous year, sources have told Moneycontrol.

“After further scrutiny, the department expects that 50 percent of the money will fall in the tax evasion category,” a source said.

The Mumbai region accounts for 33 percent of the total income tax revenue.


“Most of the undisclosed money comes from infrastructure companies and large jewellers,” the source added.

The I-T department had earlier raided more than 25 large entities where they found discrepancies in the books.

The overall picture will emerge at the end of this month with the financial year ending and figures from the government’s tax amnesty scheme becoming available. However, the I-T department expects a 20-30 percent shortfall despite the widening tax net. Bad advance tax figures have also dimmed expectations of meeting the tax target.

Collective action from the country’s market regulator as well as the income tax department has proved fruitful, with the no major case of tax evasion from long term capital gain via the stock market being reported. Last year, several cases were detected on this front.

In January, The I-T department had flagged off some 32,000 entities to SEBI, saying they were evading taxes by faking long term capital gains.

SEBI has said that tax evasion is outside the purview of its regulations and can only take action where it can prove that the stock prices had been manipulated. The regulator said that it cannot impound or disgorge gains generated by entities trying to launder undisclosed income through stock market transactions.

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First Published on Mar 21, 2017 09:14 pm
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