Transactions of more than ₹12,000 crore are under the scanner of the income-tax department that is probing several commission agents of insurance companies over alleged tax evasion, people in the know told.
These transactions were made by alleged shell companies that insurance companies allegedly used to pay much higher commissions to agents than the cap set by the insurance regulator, they said.
In November last year, the department had conducted searches on premises linked to the agents after goods & services tax (GST) authorities informed the insurance regulator about alleged malpractices by more than a dozen insurance companies while allocating commissions to their agents.
Source:
Economic Times
