The income tax department has sent two notices on Paisabazaar, a credit marketplace run by listed PB Fintech, requesting a response regarding payments made to vendors and related parties.
Reetu | Nov 30, 2024 |
Paisabazaar gets Income Tax Notice over disputes in Payments made to Vendor and Related Parties
The income tax department has sent two notices on Paisabazaar, a credit marketplace run by listed PB Fintech, requesting a response regarding payments made to vendors and related parties.
The notices mark the conclusion of a larger investigation into some companies in the sector for paying more commission to intermediaries than allowed by regulations for policy sales. PB Fintech also runs the insurance marketplace Policybazaar.
Income Tax officials stated that notices will be sent to around 18 insurance companies, as well as 60 intermediaries and agents. Many automobile and travel insurance companies may potentially participate in the drive.
The department estimates gross tax evasion in the sector at around Rs.30,000 crore.
Paisabazaar received a notice on Tuesday under the Prohibition of Benami Property Transactions Act, 1988, from the Deputy Director of Income Tax and the Assistant Commissioner of Income Tax in Delhi, seeking explanations for transactions and services provided by certain vendors and related entities.
Officials stated that their investigation revealed an irregularity in payments made to vendors that did not match the company’s declared income and expenditure.
The company confirmed getting the notices but didn’t respond to further queries.
The company is “needed to provide necessary information and explanation with respect to the payments made to a few vendors” and will take all necessary action to present and defend its case before the relevant authority, the company said.
“Paisabazaar will be duly submitting its response to the authority as per the specified time periods,” the company added.
According to officials, the department has already sent notices to various companies in accordance with the Benami Transactions (Prohibition) Amendment Act of 2016.
“We have sent notices to many insurance intermediaries, and many more will follow,” a senior official said, adding that companies will have adequate time to reply to them.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
