The Income Tax department of India is probing an alleged tax evasion of $50 million by Supam Maheshwari, the founder of FirstCry, an online retailer of baby and child products. The department has sent notices to Maheshwari asking why he did not pay taxes on equity transactions conducted in FirstCry.
The tax department is also probing several investors in FirstCry, including private equity firm ChrysCapital Management Co and Sunil Bharti Mittal's family office.
Maheshwari has denied any wrongdoing and said that he is cooperating with the tax authorities. He has also said that he is confident that the investigation will clear his name.
If Maheshwari is found guilty of tax evasion, he could face a fine of up to 200% of the evaded taxes, as well as imprisonment of up to 7 years.
The alleged tax evasion by Maheshwari is the latest in a series of high-profile cases of tax evasion in India. In 2021, the tax department raided the offices of several leading companies, including the Adani Group and the Nirav Modi Group, in connection with alleged tax evasion.
The government of India has stepped up its efforts to crack down on tax evasion in recent years. In 2022, the government introduced a new law that makes it easier for the tax authorities to track and seize assets of suspected tax evaders.
The government's crackdown on tax evasion has been welcomed by many, but it has also been criticized by some as being too harsh. However, the government has said that it is committed to ensuring that everyone pays their fair share of taxes.
CAclubindia
