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EFI Hit With Rs 4.62 Cr Tax Notice Over Compliance Lapses
12 Feb
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.
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.
Further compounding the issue, the federation also failed to obtain necessary approval from the Central Board of Direct Taxes (CBDT) for overseas remittances made towards affiliation fees and international commitments. Failure to pay the notice amount within the stipulated period could result in interest and penalties under the Income-Tax Act.
