Amid IL&FS crisis, 4,000 cancelled NBFCs come under I-T lens for violations

Income-Tax department examining data received from RBI, FIU to check potential tax evasion

The income-tax (I-T) department is probing more than 4,000 non-banking finance companies (NBFCs) whose licences have been cancelled by the Reserve Bank of India (RBI). 

According to I-T sources, the department is looking into the origin of assets in the balance sheets of these NBFCs, and whether they were disclosed.

Further, tax officials are examining whether the loans sanctioned by these firms have been used by their borrowers for genuine business purposes. 

The RBI last month shared the city-wise data with the department. The data has details on companies that are associates/group firms of large state-owned banks and corporate houses,