MM TAX CLUB

Income Tax Department initiated a Search & Seizure action on few groups engaged in the business of gold & diamond jewellery and real estate, on 17.11.2022. The searches were carried out at more than 30 premises spread over Patna, Bhagalpur, Dehri-on-Sone, Lucknow and Delhi.

During the course of the search, large number of incriminating documents and digital evidence demonstrating evasion of income have been found & seized. 

In one of groups, engaged in the business of gold & diamond jewellery, analysis of seized evidence reveals that this group has invested its unaccounted income in cash purchase of jewellery, renovation of shops and immovable properties. This group has been found to have introduced unaccounted money of over Rs. 12 crore in its books of account, in the garb of advance from customers. Further, upon physical verification of stock, during the search action, unaccounted stock of more than Rs. 12 crore has been found.

In the case of another group engaged in real estate business, evidences of unaccounted cash transactions in purchase of land, construction of buildings and sale of apartments, have been found and seized. The evidence seized in the case of a prominent land broker has further corroborated the above unaccounted transactions. The quantum of such unaccounted cash transactions is more than Rs. 80 crore. The unaccounted income so earned by the key persons of the group has been invested in acquisition of many immovable properties including large parcels of land.

During the search operation, unaccounted cash and jewellery worth more than Rs. 5 crore have been seized. A total of 14 bank lockers have been put under restraint. So far, the search action has led to detection of unaccounted transactions exceeding Rs. 100 crore.

Further investigations are in progress.

The provisional payroll data of EPFO released on 20th November, 2022 highlights that EPFO has added 16.82 lakh net members in the month of September, 2022. Year-on-year comparison of payroll data reflects an increase of 9.14% in net membership addition in September, 2022 as compared to the corresponding month during last year in 2021. The net enrolment during the month is 21.85% higher than the monthly average recorded during the last fiscal. As per data, around 2861 new establishments have started complying under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 ensuring social security cover to their employees.

                Of the total 16.82 lakh members added during the month, around 9.34 lakh new members have come under the coverage of EPFO for the first time. Among the new members, highest number was registered for age group of 18-21 years with 2.94 lakh members. This was followed by age group of 21-25 years with 2.54 lakh members. Approximately 58.75% are from the age-group of 18-25 years of age. This shows that first-time job seekers are joining organized sector workforce in large numbers following their education and new jobs in organized sector are largely going to the youth of the country.

                During the month, approximately 7.49 lakh net members exited but rejoined EPFO by changing their jobs within the establishments covered by EPFO and opted to transfer their funds from previous PF account to the current account instead of opting for final settlement. The payroll data indicates that number of members exiting from the coverage of EPFO have continuously declined during the past three months. Month-on-month comparison shows that around 9.65% lesser members have exited EPFO during the month of September, 2022 as compared to the previous month.

                Gender-wise analysis of payroll data indicates that enrolment of net female members has been 3.50 lakh in September, 2022. Year-on-year comparison of enrolment data shows that net membership of females in organized workforce has increased with a growth rate of 6.98% in September, 2022 comparing with the net female membership during previous year in September, 2021. Among the total new members joining EPFO during the month, enrolment of female workforce is recorded as 26.36%.

                State-wise payroll figures highlight that month-on-month growing trend in net member addition was observed in states of Maharashtra, Gujarat, Uttar Pradesh, Rajasthan, Andhra Pradesh, Orissa etc. The states of Maharashtra, Karnataka, Tamil Nadu, Haryana, Gujarat and Delhi continue to remain in lead by adding approximately 11.41 lakh net members during the month, which is 67.85% of total net payroll addition across all age groups.

                The classification of industry-wise payroll data indicates that mainly two categories i.e. ‘Expert services’ (consisting of manpower agencies, private security agencies and small contractors etc.) and ‘Trading-Commercial establishments’ constitute 48.52% of total member addition during the month. Comparing industry-wise data with that of previous month, higher enrolments have been noticed in industries namely, ‘Banks other than Nationalised Banks’, ‘Textiles’, ‘General Insurance’, ‘Hotels’, ‘Hospitals’ etc.

                The payroll data is provisional since the data generation is a continuous exercise, as updating employee record is a continuous process. The previous data hence gets updated every month. From the month of April-2018, EPFO has been releasing payroll data covering the period September, 2017 onwards. In monthly payroll data, the count of members joining EPFO for the first time through Aadhaar validated Universal Account Number (UAN), existing members exiting from coverage of EPFO and those who exited but rejoining as members, is taken to arrive at net monthly payroll.

                EPFO is India’s principal organization responsible for offering social security coverage to the organised sector workforce under Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. It offers a number of services to its members including provident fund, pension benefits to the members on their retirement and family pension & insurance benefits to their families in case of untimely death of the member.

Union Commerce Minister addresses the 21st World Congress of Accountants

Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said that India is a bright shining spot in the world economy amidst global economic uncertainty. He was addressing the 21st World Congress of Accountants in Mumbai.

Union Commerce Minister said that India has demonstrated that despite the prevailing volatility, uncertainty, complexity, ambiguity in the world, our country has the leadership, capabilities and the skill that is required to navigate the economic recovery. “Despite the pandemic challenges, very reasonable measures were taken to sustain the Indian economy where a strong focus was on the macroeconomic fundamentals. Our Government focussed on inclusive well-being of all sections of society.”

                The Union Commerce Minister said that the world today is looking up to Indian economy to steer growth and to show the way. “The world recognises India’s strong economic fundamentals, demographic dividend, an unmatched consumer base, skillsets and management abilities of India’s youth.”

                Speaking about the G-20 presidency, the Commerce Minister said that our theme for the G20 Presidency is ‘Vasudhaiva Kutumbkam’. “India believes that the world is one family. India cares for the whole world and it is in this context that we have placed the theme of our Presidency as One Earth, One Family, One Future. While the world focuses on consumption led growth, India focuses on sustainability and respects nature. India believes in inter-generational equity and that it is incumbent on each one of us to leave behind a better planet than the one we have inherited.”

                The Union Minister said that we are working with a vision to make India a developed nation by 2047 and to take prosperity to every Indian. “Prime Minister Shri Narendra Modi and the people of India have envisioned a future where we wish to see India a developed nation as we celebrate 100 years of Independence”.

                Addressing the Chartered Accountants at the World Congress of Accountants, the Union Minister said Chartered Accountants are custodians of this vision. “CAs will be required to validate the progress of this mission, to recognise whether all that is promised and agreed amongst nation, is being implemented. We certify the true and fair picture.”

                He added “In the global economic recovery as the world prepares itself for better energy security, food security, as we see the future where innovation and technology is going to drive growth, it is the responsibility of all of us as CAs to work with the Government & Institutions”.

                                The 21st World Congress of Accountants 2022 is being hosted by The Institute of Chartered Accountants of India in Mumbai in Hybrid mode. This theme for the WCOA 2022 is ‘Building Trust Enabling Sustainability’.