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.
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.
“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.
{{/usCountry}}“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.
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