New Delhi, Nov 22:  In a significant revelation, the Income Tax (I-T) department has uncovered a staggering Rs 10,000 crore tax evasion by online retailers operating through popular social media platforms like Instagram and Facebook. The department has issued notices to 45 brands across the country, citing non-payment and underreporting of taxes over a three-year period. The evasion came to light during a close monitoring of eCommerce entities as well as shops on Instagram and Facebook.

"We are closely monitoring the shops on Instagram and Facebook and have detected evasion to the tune of about Rs 10,000 crore," stated a senior I-T official. Notices were dispatched between late October and November 15 for the assessment years spanning 2020 to 2022, with plans to extend the action to more entities in the coming months.

The 45 companies, primarily dealing in apparel, jewellery, footwear, bags, and gift items, include well-known retailers leveraging social media for consumer outreach. Notably, some of these entities also conduct international sales. With over 229 million active Instagram users and more than 314 million Facebook users, these entities boast impressive turnovers, according to government officials. The I-T department's crackdown reflects a concerted effort to ensure tax compliance in the burgeoning online retail landscape.

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