The Income Tax (I-T) Department has found widespread cases of real estate developers and stock brokers providing wrong business codes in their tax returns, which it says could be to hide evasion of taxes.
The department has started identifying these entities and has decided to prosecute them for providing wrong codes and also for evasion of taxes, wherever found.
“CBDT has decided to prosecute stock brokers and real estate developers who did not file their business codes correctly in the tax return. There could be big names,” said a senior official of the finance ministry.
Business codes specify the sector of the business and the I-T department uses these in its computer-aided scrutiny selection system for selecting potential cases of tax evasion in various sectors.
