Income Tax department’s survey action underway on Marico, ETCFO
The Income Tax Department on Wednesday carried out survey action on consumer goods company Marico Ltd as part of a nationwide action.
Marico, which owns brands such as Parachute, Saffola and Livon, has not issued any official statement yet on the development. The shares of the FMCG giant were trading at Rs 718.15 apiece on the BSE, down 0.78% as 10.38 AM.
Further details on the scope or findings of the ongoing action is awaited.
What is a survey by Income Tax department?
A survey under Section 133A of the Income Tax Act differs from a search operation. While its scope is narrower, the powers are wide enough to detect possible tax evasion on income earned. According to the Bombay Chartered Accountants Society (BCAS), before exercising this power, only limited preconditions need to be satisfied by the Income Tax Authority.
During a survey, officers are empowered to inspect books of account and other documents, place identification marks on them, and make extracts or copies. They may also impound books or documents, though these cannot be retained beyond ten working days without the approval of the Chief Commissioner or Director General.
If the person surveyed states that books or other items are kept outside the business premises, officers can visit and survey that location as well.
