Four lakh companies might lose their registration for not filing tax returns

More than one-third of the 11 lakh active Indian companies will most likely lose their registrations, having failed to file their income tax returns for three consecutive years.

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The notices for such deregistration were sent out to over four lakh companies beginning last month. These companies didn’t file their tax returns for 2013-14 and 2014-15, and in case they repeat the same for 2015-16, which they still can in the grace period of 30 days being offered by the government, their names would be struck off by the RoC.

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Not only this, the ministry of corporate affairs will also make the names of defaulter companies public, while also sharing their information with the income tax department, banks and the Reserve Bank of India. This would be done to make sure that the companies are not able to carry out any transactions.


(Image source Time)