Income Tax Dept Launches Probe into 36 Chartered Accountants

On Thursday, the Income Tax Department in Uttar Pradesh announced that it has begun a major investigation involving thirty‑six registered chartered accountants. The probe follows accusations that the professionals facilitated the transfer of funds abroad through fake trust‑shell entities, a practice that could be designed to conceal taxable receipts.^[1]

36 Chartered Accountants Now Under Investigation

The department’s filing highlights that the thirty‑six CAs are now under scrutiny. The list was released as part of a broad crackdown on accounting outfits that may be helping clients obscure payments moving outside India.^[1]

Alleged Use of Fake Trusts to Send Money Abroad

Sources indicate that the alleged scheme involved creating a web of shell companies tied to non‑existent trusts. These entities were reportedly used to mask the origin of remittances sent overseas, thereby evading tax obligations.^[1]

Enforcement Directorate Raids Add to Trust Crackdown

Adding to the ripples in the trust sector, the Enforcement Directorate raided the premises of Jauhar Trust office bearers in Rampur. The raids halted ongoing bulldozer activity linked to the trust, underscoring a concerted effort to curb illicit trust structures.^[2]