Mumbai, March 5: The income tax department has unearthed a Rs 3,200 crore scam where 447 companies deducted tax from its employees but did not deposit with the government and diverted to further their business interests.
The TDS wing of the I-T has initiated prosecution against these firms and in some cases, warrants have been issued, sources said. Under the Income Tax Act, the offences attract a minimum punishment of rigorous imprisonment of three months to a maximum of seven years with fine. Prosecution is initiated under Section 276 B.
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