India Markets closed

Indians With Indirect Holdings In Offshore Firms Come Under Tax Scanner: Report

Roshni Agarwal

As per a leading business dailies report, the department of Income Tax now targets individuals with properties or stocks in overseas firms or persons who are beneficiaries of offshore trusts for not disclosing these indirect holdings.

Indirect investments can be explained as the next-level holdings or investments in other overseas firms by an entity, wherein a resident Indian has his or her stake. IT department officials have asked individuals to specify their indirect investments in B, C and D, while at the same time also disclose investments made in A in their income tax returns, the report said.

The department has asked these high profile individuals as to why they have not disclosed their indirect investments even when they happen to be the ultimate beneficial owners (UBO) of the offshore firms.

Further in accordance with the report, non-disclosure of these indirect holdings may attract a fine of Rs. 10 lakh. And if the response received is not found to be satisfactory by the department, it may likely invoke the new black money law against the individual.

GoodReturns.in

Also Read:

How Will Tax Exemption On Notional Rent For Second House Affect Taxpayer?

ITR Filing: Why You Should File Belated ITR By December 31?

How To Claim Tax Deduction For Investment Towards NPS?