A Whip Being Cracked By The Government On Shell Companies

The government has tried to be stringent towards the Shell companies by tightening the rules via the proposals of the budget. The government has decided to implement the punitive actions that would comprise of freezing of the bank accounts and eliminating the names of the dormant companies. Investments being Limited Company Registration In India done by the shell companies in the real estate would also be scanned as the government has decided to put into effect the Benami transaction’s amendment act.

A meeting with the senior officials of varied departments was held in the prime minister’s office on Friday for reviewing the functionality of the companies not possessing any operations and being indulged in money laundering. The concerned regulatory ministry stated that the disciplinary action has already been initiated against the professionals who are indulged in such malpractices and operations.

The main aim of all this is to prevent money laundering and evasion from the taxes. Technology No 1 GST Consultant In India will be used by the government for the identification of the shell companies. A database of such companies and their directors will be created by extracting the information from the varied agencies. The 2017–18’s budget reveals the proposal of the government about imposing ten percent of the capital gains’ tax of long term on the ones who are indulged in the investment in the unlisted stocks and haven’t paid the tax of the securities’ transaction after the year 2004.

Indicators of Red flag will be used for the identification of the shell companies. After the demonetization of Rs. 1000 and Rs. 500 currency notes the last year in November, an analysis of the Shell companies was done and this analysis revealed that the deposits of Rs.1, 238 crore was done during the period of November and December. Also, in an investigation being done by the SFIO, serious fraud investigation officer, it was stated that about Rs.3900 crore tentatively was laundered by about 559 people by seeking the aid of 54 professionals.

Conclusively, Prime minister has formulated the task for the members for monitoring the actions that have been taken against the deviant Shell companies by Business Advisory Companies In India varied agencies. It has been decided to take stringent actions against certain shell companies. Disciplinary action will be taken against the professionals who have been indulging in malpractices and assisting in wrongdoings of shell companies.