BBC Admits Underreporting ₹40 Crore Income in India: Report

The British Broadcasting Company (BBC) has come under scrutiny for allegedly evading taxes in India, according to two officials from the Central Board of Direct Taxes (CBDT), as reported by Hindustan Times. The BBC has also acknowledged that it may have paid lower taxes than its actual liability. The broadcaster is now required to follow formal procedures, including filing revised returns and settling all outstanding dues, penalties, and interest.

No Special Treatment for BBC, Say CBDT Officials

CBDT officials have emphasized that the law applies to all entities in the country, including media companies and foreign entities. The BBC must adhere to the prescribed procedures or face legal consequences.

An official was quoted in the report saying that the Department will continue to take action against the BBC until the matter reaches a resolution. The tax department asserts that the BBC's attempts to portray the action as a vendetta by the government have been refuted, as the broadcaster has informally admitted its involvement in deliberate tax evasion.

Income-Tax Department's Investigation into BBC's Operations

In February, teams from the Income-Tax department conducted a "survey" at the BBC offices in New Delhi and Mumbai, suspecting tax evasion. Officials alleged that the income and profits disclosed by the organization's units were not proportionate to its operations in India. The investigation revealed that the BBC had underreported Rs 40 crores of income in its tax returns, prompting the broadcaster to confess to the CBDT via email.

BBC's Response and Controversy Surrounding the Case

BBC director-general, Tim Davie, assured Indian employees that the broadcaster is driven by purpose and does not have an agenda. The British government has defended the BBC, emphasizing its editorial freedom and the significance of media freedom and freedom of speech in robust democracies. However, some view the search of the BBC's offices in India as an attempt to silence critical voices, leading to a strong reaction from the Indian government.