CA Sansaar
CAG Exposes ₹74,766 Crore Tax Irregularities in Banks & NBFCs
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The Comptroller and Auditor General (CAG) has highlighted significant tax-related irregularities involving banks and non-banking financial companies (NBFCs), with a possible revenue implication of nearly ₹74,766 crore. The findings were presented in a report tabled in Parliament on Thursday.
The audit covered 2,378 selected cases examined up to June 2023, focusing on how the Income Tax Department administered deductions and exemptions claimed by these financial entities. The report pointed to notable gaps in oversight, instances of non-compliance, and underlying systemic weaknesses within the framework.
According to the CAG, there is a pressing need to harmonize tax regulations with central banking guidelines, while also strengthening the provisions governing NBFC taxation.
In total, the audit recorded 1,847 observations, which included 671 systemic deficiencies and 533 compliance-related issues. A major portion of the discrepancies stemmed from incorrect claims of deductions, particularly concerning bad debts, provisions for doubtful advances, and allocations made to special reserves.
The audit covered 2,378 selected cases examined up to June 2023, focusing on how the Income Tax Department administered deductions and exemptions claimed by these financial entities. The report pointed to notable gaps in oversight, instances of non-compliance, and underlying systemic weaknesses within the framework.
According to the CAG, there is a pressing need to harmonize tax regulations with central banking guidelines, while also strengthening the provisions governing NBFC taxation.
In total, the audit recorded 1,847 observations, which included 671 systemic deficiencies and 533 compliance-related issues. A major portion of the discrepancies stemmed from incorrect claims of deductions, particularly concerning bad debts, provisions for doubtful advances, and allocations made to special reserves.
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