I-T department lens on 50-60 reporting entities for non-compliance

July 12, 2023 09:34

As many as 50-60 reporting entities (REs), mainly co-operative banks, nidhi companies, forex dealers, and sub-registrars dealing in immovable properties have come under the income-tax(I-T) department's scanner.

The tax department has prepared a list of reporting entities that have failed to file specified financial transaction (SFT) reports in the past two financial years for spot and physical verification.

"These reporting entities did not file SFT reports regarding certain high-value dealings for the reporting period financial years 2021-2022 and 2022-23, and calendar years 2021 and 2022. Also, some of the reportable accounts filed were not accurate,' a government official said.Scrutiny of REs follows unusual defaults in filing certain transactions, especially related to cash deposits and credit card purchases in the past 2-3 years. The department is of the view that monitoring compliance by reporting entities for submission of transactions is critical for widening and deepening the tax base.

The tax department is in the process of issuing notices to these entities under Section 133 (6), which deals with obtaining information for verification of a transaction.

SFT is an annual report that certain prescribed entities (banks, non-banking lenders, companies issuing dividends, and issuers of debentures, bonds and shares) have to file with the tax department regarding transactions above a specified monetary threshold.

Separately, tax authorities are also finalising a standard operating procedure (SOP) for prescribed financial institutions (custodians and depository) which are required to maintain and report on account holders "resident' in foreign counterparts.

This is to curb defective filing about account holders, said two government officials in the know.For FY23, the last date to file a statement of financial transactions was May 31, 2023. "The gaps in information have been identified and accordingly a list has been prepared,' another official said.

Delay in filing SFT may entail a penalty of up to Rs. 1,000 for each day of default. Non-filing or filing inaccurate statements may also lead to a penalty of Rs. 5,000.

-- Shrimi Choudhary/Business Standard

« Back to LIVE

TOP STORIES

Nadal-Alcaraz romp to opening doubles victory

Rafael Nadal teamed up with Carlos Alcaraz for the first time as Spain's so-called dream team opened their Olympic doubles campaign with a 7-6(4), 6-4 defeat of Argentine sixth seeds Maximo Gonzales and Andres Molteni on Saturday.

Paris 2024 Olympics: Medals Table

The medal tally at the 2024 Olympic Games in Paris.

Paris Olympics: How India's athletes fared on Day 1

Manu Bhaker marched into the final of women's 10m air pistol event at the Olympics after finishing third in qualifications on Saturday.

Satwik-Chirag, Lakshya win; Ponnappa-Crasto lose

India's Lakshya Sen got off the a rousing start at the Olympics, beating Guatemala's Kevin Cordon 21-8, 22-20 in the men's singles badminton competition on Saturday.

Preeti Pawar in women's boxing pre-quarter-finals

India's Preeti Pawar entered the pre-quarter-finals of the women's 54kg boxing competition, scoring an easy victory over Vietnam's Vo Thi Kim Anh in a first round bout at the Paris Olympics on Saturday.