The nationwide searches of brokers conducted by the income- tax department in March end have yielded a total undisclosed income of around Rs 1,200 crore so far, a top income tax official here told Business Standard today.
The total undisclosed income the department has detected so far during the year is around Rs 1,400 crore. The figure includes income the tax on which had been evaded by companies and other entities, as well as brokers.
The department had searched the residential and office premises of brokers. These included Ketan Parekh and his associate companies, the Nirmal Bang group of companies, the First Global group of Shankar Sharma, the Anand Rathi group as well as Radha Kishan Damani.
If the income tax department is able to prove that those searched had undisclosed income, the brokers and the other entities may have to shell out a tax liability of Rs 840 crore. This is estimated on the basis of the normal tax rates plus penalties, which would effectively be 60 per cent of the total undisclosed income.
Director General of Income Tax ( Investigation) G Saran while commenting on the searches of the stock brokers warned,
