I-T scanner on corporate results ahead of advance tax filing

Tax dept to start sending letters to companies on Dec 1 seeking reasons for payment shortfall

The income-tax department is monitoring mismatches in revenue growth and advance tax payments by the top 100 companies across sectors, ahead of December quarter filings. 

According to sources, the tax department has identified at least 30 companies that had claimed zero growth for the quarter under consideration, citing various macroeconomic factors such as uncertainties due to the goods and services tax (GST). The firms had said they would pay tax and interest if growth came back in subsequent quarters.

However, officials suspect the companies were suppressing information to understate their advance tax liabilities. Hence the department is verifying the claims by examining