The income tax department is said to have detected tax evasion of nearly Rs 10,000 crore over a three-year period by etailers selling goods via social media platforms such as Instagram and Facebook. “Apart from the large ecommerce companies, we are closely monitoring the shops on Instagram and Facebook and have detected evasion to the tune of about Rs 10,000 crore,” a senior official told ET. The list includes some prominent retailers that use social media to reach a larger audience, said the official without disclosing names. Citing an example, the official said that three Mumbai-based sari e-tailers came on the income tax department’s radar after they sponsored a star-studded fashion show. In June, ET had reported that the income tax department had sent notices to many social media influencers, for paying zero or “substantially low” tax despite receiving hefty fees from companies whose products they promoted through their posts.

Source: Economic Times November 22, 2023 13:16 UTC