Why did the Equestrian Federation of India receive a Rs 4.62 crore tax demand?

The Equestrian Federation of India received a Rs 4.62 crore tax demand notice for the assessment year 2024-25 primarily due to the non-submission of a critical accumulation certificate and other required compliance documents.

What is an accumulation certificate and why is it important?

An accumulation certificate is documentation filed by an organization to set aside income for future use without it being taxed in the current year. Its non-submission led to the tax demand against the EFI.

What are the consequences if the EFI does not pay the tax demand?

If the EFI fails to pay the Rs 4.62 crore demand within 30 days, it could face interest charges at one percent per month and potential penalty proceedings under the Income-Tax Act.

Home / Business and Economy / EFI Hit With Rs 4.62 Cr Tax Notice Over Compliance Lapses

EFI Hit With Rs 4.62 Cr Tax Notice Over Compliance Lapses

12 Feb

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Summary

Equestrian Federation of India received a Rs 4.62 crore tax demand.
Non-submission of a crucial accumulation certificate caused the issue.
Delays by the Executive Committee contributed to the current situation.

EFI Hit With Rs 4.62 Cr Tax Notice Over Compliance Lapses

The Equestrian Federation of India (EFI) has received a significant demand notice amounting to Rs 4.62 crore from the Income Tax Department for the assessment year 2024-25. This notice, issued on February 9, 2026, under Section 156 of the Income-Tax Act, 1961, requires payment within 30 days.

The primary reason for the demand is the non-submission of a crucial 'accumulation certificate', which organizations typically file to set aside income for future use without immediate taxation. EFI's Secretary General, Col Jaiveer Singh, attributed the situation to delays by the Executive Committee in completing documentation and securing approvals.