Income Tax Department has sent notices to taxpayers

Income Tax Department has revealed tax evasion of Rs 10 thousand crores. This tax evasion has been done by online retail companies during the last three years, regarding which the Income Tax Department has also sent tax notices to 45 brands. Online retail companies sold products using social media platforms Facebook and Instagram, but did not provide complete information about their income. Also, these brands did not pay the tax in full.

The Income Tax Department has sent tax notices to 45 online retail brands between October and November. The Income Tax Department (IT Department) has said that apart from these 45 brands, some more are also included, to which tax notices will be sent soon. These companies have also not paid tax nor disclosed their income.

When was the notice sent to the brands?
According to the ET report, a senior officer said that except big e-commerce companies, we are monitoring the brands selling their products on Instagram and Facebook. He said that during this investigation, a case of tax evasion of about Rs 10 thousand crores has come to light and for this the IT Department had sent notices to 45 brands between the last week of October and 15 November, which is for the assessment year 2020 to 2022. Was. At the same time, some other companies are being monitored.

What business do these e-commerce companies do?
It has been said in the report that the 45 companies to which tax notices have been sent sell different products. These companies sell jewellery, footwear, bags and gift products. These companies also include some major e-commerce companies, which are reaching out to customers through social media. Apart from this, there are some companies which are selling their products in India as well as abroad.

Returns filed much less than turnover
The report claims that these companies are selling through Instagram with only a small shop and warehouses and their turnover is more than Rs 110 crore, while these companies have filed income tax returns of only Rs 2 crore. . Most of the payments by online retailers were made through UPI, due to which the IT department easily tracked them. It is noteworthy that there are more than 22.9 crore active Instagram users in the country, which is the highest in the world. If we talk about Facebook users, their number is more than 31.4 crores.