Income tax officials unearth refund scam worth £4m in India’s Hyderabad

Eight tax consultants and many employees of railways and police department and several technology firms in southern Indian cities of Hyderabad and Vijaywada were under the scanner.

• Shubham
• 29 June, 2023

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By: Shubham Ghosh

INDIA’S income-tax (I-T) department has unearthed a major tax-refund scam worth Rs 40 crore (£3.8 million), Times of India reported.

As a result, eight tax consultants and many employees of railways and police department and several technology firms in southern Indian cities of Hyderabad and Vijaywada were under the scanner of the I-T investigation wing in Hyderbad.

According to the Times report, officials of the I-T investigation wing carried out a survey at various locations in Hyderabad such as Nizampet, LB Nagar and Vanasthalipuram. They said persecution notices will be served to government officials and tech professionals involved in the case.

They also added that a criminal case will be filed with the police. Senior officials said the alleged fraud was only a tip of the iceberg and suspect that the scam could be in bigger proportions. They said the investigation will continue over the next few days to look for more consultants and employees allegedly involved in fraudulent activities, the Times report said citing official sources.