After run-ins with income and service tax authorities last year, insurers and their agents will now have a brush with the harsh benami law. “The recent notices from the I-T department under the Benami Property Act were sent to assessees who have already been assessed u/68 of the Act on the said amount. Input tax credit (ITC) allows businesses to lower their tax liability on sale by claiming credit to the extent of GST paid on purchases. The benami twist, with the penal provision of the law, may complicate matters for various parties entangled in the disputes. These deals, challenged by tax and benami laws, were cut before 2023.

Source: Economic Times January 22, 2024 12:49 UTC