BOTH THE SCHOOLS HAVE BEEN ASKED TO PAY THE TAX AMOUNT WHICH IS EXPECTED TO BE RUNNING INTO CRORES OF RUPEES. THOUGH THE DEPARTMENT IS YET TO CALCULATE THE EXACT AMOUNT
The Income Tax department, on Wednesday carried out survey in two private schools of Tricity and found various glaring tax irregularities in the functioning of both the schools. According to sources, in the early hours, two teams of 15 Tax officials started the survey in St Peter’s School in Sector 37-B, Chandigarh and Gillco International School, Kharar, Punjab. During the survey, the officials found that both the schools were allegedly not paying Income tax and were found incorrectly claiming to be exempted from the tax. Sources said that it was found that despite being a charitable institution, the St peter’s School was using the money generated from school for personal benefits. While using money generated from the school is prohibited under the Income Tax Act. In the St peter’s School, officials also found that the school trustees have bought various luxury vehicles for their personal use.
The school record documents also showed that the school is generating huge surplus which is being used in purchase of various residences occupied by the trustees in posh sectors of the Tricity. With this the officials have also recovered other documents including signed blank cheques from the school premises, which clearly showed that school had claimed fake expenses. The officials have seized the documents and are scrutinising as more irregularities are expected. However, in the Gillco International School, it was found that the school had failed to take necessary approvals from the Income Tax Department which is required to get taxation exemptions, though the school was claiming to have them. The school documents showed inflation of expenses which are being verified by the department. The authorities of both the school were not available for comments.
In almost a decade, this is the first time that the tricity private schools have come under the radar of Income tax Department.
Schools being charitable institution get exemption from the tax, but many are using the school money for their personal use
School are misusing money
Sources shared that despite the fact that every school in Tricity is a charitable institute and not a commercial, but it was noted that most of the schools are unethically using the money for their personal benefits. During the survey, the income tax officials found that in the name of the charitable trust, the owners and the trustees of both the schools had bought luxury cars and expensive houses in Tricity
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