Income Tax Department To Share Info On Tax Evasion With MCA

The Ministry of Corporate Affairs (MCA) has asked the income-tax department to provide all information on tax evasion by listed companies so that it can see whether these firms have violated the provisions of Companies Act as well. “MCA is trying to develop a system that whenever the I-T department finds any such case where there is income-tax evasion or any practice of showing wrong amount in financial statements, the department would inform us also,” a senior ministry official said. He said usually such things involve violation of Companies Act too, which calls for probe in such companies from MCA as well. A large number of cases have been there where the companies evading tax also enter into practices like inflating their accounts or fudging financial statements, which amounts to flouting of Companies Act, the official added.