Scams have become the latest norm of the corporate companies. At times, the methodology to conduct scam is repetitive, then on other occasions, companies find a loophole in the legal and banking system and go about scamming them. Either way, scamsters keep making headlines with their frauds, the latest being the TDS Scam of Rs. 3200 crores!
The income tax department has discovered 447 companies who deducted taxes from their employees but did not deposit it to the government. This fraud is during the period of April 2017-March 2018. Warrants have been issued against these companies for the alleged TDS scam. The I-T department is in the process of adding IPC sections of cheating and criminal breach of trust because the employers duped the employees as well.
An I-T official said,
“In the recent verification surveys carried out, it was detected that in about 447 cases, Rs 3,200 crore was deducted by the companies but not deposited into the government account. We also intend to arrest some of them.”
Under the Income Tax Act, such frauds could attract a punishment of minimum 3 months to a maximum of 7 years. In the meantime, I-T department has initiated the recovery process of these legitimate tax collections.