Hyderabad: About 7,500 entities in the state, mainly hospitals and educational institutions run by trusts and claiming to be non-profit organisations, walk away with about Rs 50,000 crore in income-tax exemptions.
Recently, unaccounted cash was seized from an engineering college at Gandipet and the trustee was found owing high-end cars, the source said.
In February, a prosecution notice was issued against Jawaharlal Nehru Technological University (JNTU) for not filing tax returns since its inception. JNTU has neither filed returns nor paid income-tax on its surplus income of about Rs 150 crore for the 2016-18. Kakatiya University was not filing returns despite being Rs 8 crore surplus in 2016-17, the source said.
Asked how genuine the trusts were, an I-T official said, “It is found that activities of certain trusts are neither genuine nor being carried out in accordance with the objectives for which they were formed.”
Sleuths of the income-tax exemption wing carry out regular reviews to check if the entities are filing tax returns. In case they are not, the department issues prosecution notices....