INCOME TAX DEPARTMENT has issued a demand notice of Rs 4.62 crore to the Equestrian Federation of India (EFI) for the assessment year 2024–25 under Section 156 of the Income-tax Act, 1961, PTI reported.
The notice, dated 9 February, states that a sum of Rs 4,62,18,102 has been determined as payable by the federation for the relevant assessment year. According to the document, which is in PTI’s possession, the amount must be paid within 30 days of service to an authorised bank.
As per correspondence from EFI’s chartered accountant to the federation’s office-bearers, certain compliance documents, including a non-utilisation/accumulation certificate, were required to be signed and submitted before the Income Tax Department. A final accumulation certificate was also prepared in connection with the matter. However, EFI secretary general Col Jaiveer Singh told PTI that delays by the Executive Committee in completing the paperwork and securing necessary approvals contributed to the present situation.
EFI sources also indicated that approval from the Central Board of Direct Taxes (CBDT), under provisions linked to Section 11 of the Act and required in cases involving certain foreign transfers, was not obtained by the Col Jagat Singh-led federation.
EFI, as a National Sports Federation affiliated with international equestrian bodies, makes overseas remittances towards affiliation fees, participation expenses and other international commitments. However, the requisite CBDT approval for such foreign transfers for the relevant financial year was not secured.
The federation is affiliated with the Ministry of Youth Affairs and Sports, the Indian Olympic Association and international equestrian bodies.
