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'MSMEs evaded 5,895 cr taxes in 2010-11'

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CIOL Bureau
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BANGALORE, INDIA: A survey revealed that small and medium enterprises (MSME) and real estate sector in India had among themselves evaded Income Tax (I-T) to the tune of Rs. 5,895 crore during 2010-11, according to a news report by Hindustan Times.

The I-T department had conducted 3,911 surveys and search operations in MSMEs across India, and detected total undisclosed income of Rs. 5,895 crore, which is 22 per cent more than Rs. 4,857 crore detected in 2009-10 through 4,680 surveys, added the HT report.

Quoting an I-T department source, the daily said the recent detection of a large number of cases of undisclosed income has led the department to create a new category for the first time on MSMEs, so that it could be effectively monitored

“A large number of entrepreneurs usurped bank loans borrowed for setting up units by siphoning it for personal gains and ultimately concealing incomes,” a senior official in the MSME ministry said.