Directors of Indian shell companies that have not filed tax returns for at least three years have been disqualified from re-appointment or from being appointed to similar roles elsewhere, India`s finance ministry said on Wednesday.
The move, part of a crackdown on illegal transactions and tax evasion, comes a day after authorities froze the bank accounts of 209,032 suspected shell companies.
In a statement, the ministry said the latest action would disqualify as many as 300,000 directors.
Tax officials say shell companies - which have no active business operations or assets - are used to obscure ultimate beneficiaries, conceal political investment, evade tax, commit fraud or manipulate tenders.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.