Income Tax Authorities Uncover Large-Scale Tax Evasion by Alkem Labs

Following an investigation by the income tax department, significant evidence of large-scale tax evasion has been unearthed at Alkem Laboratories, a prominent pharmaceutical major.

The income tax department’s probe into Alkem Laboratories, one of the leading players in the pharmaceutical industry, has revealed substantial instances of tax evasion on a significant scale.

In a concise summary, investigations have unveiled substantial tax evasion by Alkem Laboratories, with alleged claims of over Rs 1,000 crore in bogus deductions. Additionally, the company reportedly made significant payments to doctors for prescriptions.

The income tax department’s investigation into pharma major Alkem Laboratories has uncovered significant tax evasion by the company. Last September, the department conducted surveys on Alkem Laboratories’ offices and premises prompted by intelligence indicating substantial tax evasion. The investigation persisted with officials recording statements and scrutinizing data and balance sheets in subsequent months.

As per sources from India Today TV, the income tax department has uncovered that the company allegedly made bogus and excessive deductions for its manufacturing units in Sikkim. The purported amount of these fraudulent claims exceeds Rs 1,000 crore. Sources within the firm revealed that numerous deductions were claimed under various special sections such as 80-IC.

The income tax department’s investigations further unveiled that Alkem Laboratories had been engaging in payments to doctors and medical practitioners to secure prescriptions for their company-manufactured drugs. The investigation period highlighted payments amounting to hundreds of crores made to doctors by Alkem Labs. Sources additionally asserted that the probe findings are likely to result in substantial penalties for the company.