Kozhikode: Black money transactions amounting to Rs 102 crores was detected in an income tax raid conducted at a used car (second hand) showroom in Kozhikode. Transactions pursued by several cine actors and sports stars via the showroom have now come under scanner. The Income Tax department is known to have served notices to the people involved.

Following a tip off, income tax raids were conducted at showrooms in Kozhikode, Malappuram and Ernakulam. It is alleged that individuals often sold off their luxury cars after using them for a while to the company, they reportedly accepted unaccounted money in return. Investigation is progressing at the moment.

Last year, GST intelligence raids on 20 textile shops in Kozhikode uncovered a Rs 27 crore tax evasion scheme through fake input tax credits. Fraud involved forging tax documents for goods bought outside Kerala. Joint Commissioner TA Ashokan led the raid, accusing traders of briefly detaining officials, which traders denied, claiming lack of prior notice.   

What is Black Money?

Black money in India refers to income or wealth that is illegally earned, not declared for tax purposes, or generated through corrupt practices. Punishments for black money transactions include heavy financial penalties ranging from 100% to 300% of the tax evaded, imprisonment ranging from months to years depending on the severity, confiscation of assets acquired with black money, restrictions on financial activities, and reputational damage. The Prevention of Money Laundering Act (PMLA) and Income Tax Act govern these penalties, aiming to curb tax evasion, promote financial transparency, and deter illegal wealth accumulation.