The Income Tax department has issued notices to several banks on their dealings with insurers. CNBC-TV18 has learnt that these notices are a result of the ongoing probe where the tax department is investigating the allegation of overriding commissions which are being paid by the insurers.

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In fact, Directorate General of Goods and Services Tax Intelligence (DGGI) has also sent a show cause notice to a bank.

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Overall, the Income Tax department and DGGI combined have 23 insurance firms under the scanner.

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