Advertisement

HindustanTimes Fri,19 Sep 2014

Small firms big in tax dodge

Debobrat Ghose, Hindustan Times  New Delhi, May 02, 2012
First Published: 23:02 IST(2/5/2012) | Last Updated: 23:11 IST(2/5/2012)

Small entrepreneurs are not small anymore, especially when it comes to evading taxes. The income tax (I-T) department has detected a major concealment of income in the low-profile micro, small and medium enterprises (MSME) sector. Along with real estate, the MSME sector is in the I-T department’s latest watch list, with the taxmen detecting an undisclosed income of Rs. 5,895 crore during 2010-11.

Advertisement

According to I-T department sources, in 2010-11, the department conducted 3,911 survey and search operations in MSMEs across India, and detected total undisclosed income of Rs. 5,895 crore, which is 22% more than Rs. 4,857 crore detected in 2009-10 through 4,680 surveys. http://www.hindustantimes.com/Images/Popup/2012/5/03_05_12-buss21c.jpg

“Till now the MSME was an untapped sector, but recent detection of a large number of cases of undisclosed income has led us to create a new category for the first time on MSMEs, so that it could be effectively monitored,” an I-T source said. 

“A large number of entrepreneurs usurped bank loans borrowed for setting up units by siphoning it for personal gains and ultimately concealing incomes,” a senior official in the MSME ministry said.


Advertisement
more from Business

Infosys partners Huawei; extends pact with Microsoft, Hitachi

India's second largest software services firm Infosys on Thursday said it has partnered China's Huawei Technologies to offer enterprise cloud, big data and communication solutions.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved