Income Tax unearths undeclared income of two industrial houses

INDORE: Income Tax (IT) department sleuths have carried out surveys at premises of two industrial houses based here and at Mumbai, as well as unearthed more than Rs 200 crore of allegedly undeclared income from them.

Premises of a pharmaceutical company and other industrial unit were surveyed at Mumbai and Indore during the last five days. Their accounts and assets were thoroughly checked, a senior Income Tax Department official said.

He said that documents examined revealed their undeclared income of more than Rs 200 crore. Both companies had undeclared income worth Rs 100 crore each, he said.

A detailed study is on to arrive at the exact worth of the undeclared income, he said.

According to trends in Indore's industrial sector, when such establishments start growing, they tend to shift their registered offices out of here mostly to Mumbai and other big cities.

The local Income Tax office is gathering details of such industries having registered offices in big cities to forward it to its respective offices to, he said.

After detecting undeclared income, the Income Tax Department charges around 30 per cent tax on it, sources close to the department said.