Truecaller's India Offices Face Income Tax Raids

Truecaller said it is co-operating with the income tax officials after its India offices were raided on Thursday. The company has offices in Noida, Mumbai, and Bengaluru, according to its website.

"Truecaller is currently assisting the authorities to the full extent at our offices," the company said in a statement, adding it is currently awaiting official confirmation and communication from the tax departments. "This is not an uncommon practice, and Truecaller will cooperate fully with the relevant authorities."

The Stockholm-based company operates a smartphone application that has features like caller ID, call blocking, flash messaging, call recording, chat, and voice by using the internet. In India, currently, Truecaller has more than 40 crore active users.

Truecaller said its practices are "entirely transparent" and is not subject to any tax investigation in India outside the routine tax audits. The company did not disclose the grounds on which the tax raids were carried out.

"Truecaller's group financial statements have always received an unqualified audit opinion. Truecaller has always paid all taxes due in India and all regions where it operates," the statement said.

"As has been previously communicated, Truecaller’s transfer pricing policy for its intra-group transactions is consistent with the internationally accepted arm's length standard. The purpose is to ensure that Truecaller pays tax in a way that is correct from the perspective of both the Swedish and the Indian tax authorities," it added.

The policy is continuously independently reviewed to ensure that it meets the tax law requirements of both countries, Truecaller further said.

On Wednesday, the Swedish firm announced the appointment of Rishit Jhunjhunwala, the company’s product chief and head of the Indian business, as chief executive officer. He will take over on Jan. 9 after co-founder Alan Mamedi steps down.