I-T Dept Sends Notices To Paisabazaar Over Vendor Payments

PB Fintech-owned insurtech platform Paisabazaar has received notices from the Income Tax Department pertaining to a few vendor payments and their associated entities.

The notices were issued by Deputy Director of Income Tax and Assistant Commissioner of Income Tax in Delhi. 

“One of the notices is issued under the Prohibition of Benami Property Transactions Act, 1988, while the other is under section 142(1) of the Income Tax Act, 1961,” according to the company’s regulatory filing.

The authorities have sought information and explanations regarding “the payments made to few vendors and their associated entities in connection with the transactions/ services provided by them to Paisabazaar,” the filing added.

PB Fintech clarified that the notice primarily requires Paisabazaar to provide documents and details related to these payments. Further, it said that it will take all the necessary steps to present its case to the authorities.

“Since it is a notice requiring certain information and documents, the company will be taking all necessary actions to present and defend its case before the relevant authority,” the filing said.

The company assured stakeholders that it is complying with the prescribed timelines for responding to the notices.

Notably, Paisabazaar came under the radar of income tax authorities for regulatory laxes and non-compliance with KYC requirements earlier this year.

While in June this year, PB Fintech’s chairperson and CEO Yashish Dahiya received a show cause notice from markets regulator Securities and Exchange Board of India (SEBI). 

The show cause notice (SCN) was regarding a $2 Mn investment made by PB Fintech FZ-LLC, Dubai in outsourced marketing services provider YKNP Marketing Management in November 2022 to acquire a 26.72% stake.