More

    Rs 4,500 cr ‘irregular’ tax benefits given to infra firms: CAG

    Must Read

    Vadodara district collector request to create conducive environment for girls education

    Give instructions to create environment for girls to have access to higher education opportunities and keep the...

    Covid 19 cases reached 11067 in Vadodara after 127 new cases on Thursday

    Total 105 discharged from hospital taking the total to 9340 Covid 19 cases in...

    Jio starts offering mobile services on 22 international flights

    Reliance Jio has started offering mobile services on 22 flights on international routes, with plans starting at...

    India’s official auditor said on Tuesday that the Income Tax department has given irregular tax benefits to infrastructure companies without verification, leading to a revenue loss of over Rs 4,500 crore.

    The Comptroller and Auditor General (CAG) in a report tabled in Parliament said the Central Board of Direct Taxes (CBDT) did not have any established mechanism to assess the impact of revenue foregone on account of deductions under Section 80 IA on the economy and industrial growth of the country.

    “There is no existing system to ascertain from the sponsoring ministries as to whether the tax holidays have had the desired impact on the growth of the economy,” the CAG said in its performance audit of the CBDT.

    In the absence of such a mechanism, the CBDT had failed to ascertain whether the very purpose of tax holidays has been achieved, it added.

    The Income Tax department has “irregularly” allowed deductions to various companies engaged in infrastructure business which have tax effect of Rs 4,524 crore, the report said.

    This included Rs 1,766.74 crore of tax benefit availed by Reliance Ports & Terminals for building captive jetties at Port Sikka in Bihar.

    Other companies that availed of such benefits include JSW Energy (Rs 340 crore), Reliance Infrastructure (Rs 51.88 crore), Tata Power (Rs 36.99 crore) and Gujarat Fluro Chemicals (Rs 22.75 crore).

    The auditor recommended that CBDT may evolve a mechanism for proper linkage between tax benefits allowed by the department with the actual investment made by the assessee in order to assess the impact of a tax holiday.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Latest News

    Jio starts offering mobile services on 22 international flights

    Reliance Jio has started offering mobile services on 22 flights on international routes, with plans starting at...

    Covid 19 cases reached 11067 in Vadodara after 127 new cases on Thursday

    Total 105 discharged from hospital taking the total to 9340 Covid 19 cases in Vadodara crossed 11000 mark after...

    Jio starts offering mobile services on 22 international flights

    Reliance Jio has started offering mobile services on 22 flights on international routes, with plans starting at Rs 499 per day. The...

    Australian cricket legend Dean Jones died of a massive heart attack

    Former Australian cricket legend Dean Jones has died of a massive heart attack. Jones was part of Star Sports commentary team and...

    MSU VC released research report conducted by team UBA

    On Thursday MSU Baroda Vice Chancellor, Prof. Parimal Vyas released a Research Report conducted by Team UBA. The research was done in...

    More Articles Like This

    - Advertisement -