The Income Tax (I-T) Department has broadened its line of questioning on the people named in the leaked financial documents called the Pandora Papers. The Pandora Papers investigation revealed hidden wealth and tax avoidance information of some of the richest people in the world. Data from about 12 million documents is being analysed by the International Consortium of Investigative Journalists (ICIJ) in collaboration with 140 media organisations across the globe.

The Indian Express, which is working with ICIJ, in early October, named more than 300 Indian businessmen, celebrities and politicians, including cricketing legend Sachin Tendulkar and businessman Anil Ambani in the list for ring-fencing their wealth by routing it through shadowy transactions using offshore tax havens.

Also read: Pandora Papers reveals King's XI Punjab and Rajasthan Royals offshore links

Drawing from their experience while investigating the Panama Papers, taxmen are now seeking information on dissolved firms, directorships in overseas firms, closed bank accounts and tax residency status over the past 16 years, reported The Economic Times.

"There may have been cases where persons have closed their accounts and quickly shut down overseas outfits after getting wind of the leak. Some did it when discussions on the black money legislation were underway," ET quoted a senior tax official as saying.

The tax department issued the first set of summons a week earlier under Section 131 (1a) of the I-T Act, which allows it to question individuals suspected of non-disclosure of earnings. Those summoned are being asked to name the service providers in the tax havens, who set up offshore entities and handled communications for these individuals.

Also read: Pandora Papers: Offshore havens of wealthy elites

Once these service providers are identified, tax officials can get more information from the governments under the double-taxation avoidance agreement or exchange of information pact.

“Information gathered under the Income Tax Act is available for use under the Black Money Act, which came into effect from July 1, 2015. There is a possibility of invocation of Black Money Act in case of proven undisclosed offshore incomes and assets, however, some important provisions of this Act, which have a retrospective effect are under constitutional challenge before various courts," Ashish Mehta, partner at the law firm Khaitan & Co, was quoted as saying by ET.

(Edited by : Shoma Bhattacharjee)