Income Tax Department Uncovers Online Retailers Evading Rs 10,000 Crore in Taxes

The Income Tax (I-T) department has uncovered tax evasion totaling approximately Rs 10,000 crore over the past three years, according to The Economic Times. A senior official revealed that, in addition to major eCommerce companies, the department is closely monitoring Instagram and Facebook shops, detecting evasion in the range of Rs 10,000 crore.

Notices were sent by the I-T department between the last week of October and November 15, covering the assessment years from 2020 to 2022. Approximately 45 such e-tailers have received intimation notices, with more expected to follow in the coming months.

The companies involved operate in sectors like apparel, jewelry, footwear, bags, and gift items. Some prominent retailers leveraging social media to reach consumers are on the list, including those selling products internationally. These entities, with impressive turnover, had filed income tax returns significantly lower than their actual turnovers, with some reporting only Rs 2 crore despite turnovers exceeding Rs 110 crore.

Given the widespread use of UPI for payments, the I-T department found it easier to track transactions from these online retailers. The government's action underscores the increasing scrutiny of tax compliance in the digital commerce space.

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