India’s Income Tax Department has launched an investigation into Truecaller, a caller ID and spam blocking app. Research is reportedly underway to examine its compliance with transfer pricing regulations. Tax officials carried out searches at several places associated with the company, including its offices in Gurugram.

The raids took place on Thursday, without notice to Truecaller. According to a report According to India Today, sources say the searches were aimed at gathering evidence on possible violations related to the company’s transfer pricing policies, which could impact the distribution of profits and taxes between India and other countries.

The same day, Truecaller released a statement acknowledging the unannounced visits by IRS agents. The company assured its full cooperation with the authorities and indicated that it was awaiting official confirmation on the subject of the investigation. Truecaller highlighted its commitment to transparent business practices, given its status as a publicly traded entity.

Truecaller said this action by Indian tax authorities does not suggest any single or ongoing tax investigations beyond regular audits. The company claimed that its transfer pricing policies met internationally accepted arm’s length standards, thereby ensuring proper tax payment in India and Sweden. These policies are regularly reviewed to comply with the tax requirements of both countries.

India continues to be an important market for Truecaller, with over 400 million active users. The company recently introduced a new feature in India called Truecaller Fraud Insurance, designed to provide additional fraud protection to its premium subscribers. Developed in partnership with HDFC Ergo, the feature is part of Truecaller’s efforts to improve user safety amid growing online scams. It is currently available exclusively to Premium subscribers, expanding the company’s premium service offerings in India.

Transfer pricing regulation aims to ensure that transactions between related entities across borders are carried out at market value, thereby preventing the shifting of profits to lower tax jurisdictions. Indian authorities have increased monitoring of multinational companies to ensure compliance, particularly in the technology and digital sectors.