The income tax department is gearing up to assess the actual income being generated from land deals and real estate projects in and around Hyderabad. The booming real estate has also become a major source of black money as well as an important source for income tax.
The department has so far gathered information regarding 1,158 building construction projects from the Hyderabad Urban Development Authority, which issues permission for layouts, and information on almost similar number of projects from the town planning department.
The department has also collected the information pertaining to 12,000 projects, either proposed or completed exclusively in those lands that come under the Urban Land Ceiling Act.
This is in addition to the information on 1.88 lakh land transactions each worth over Rs 5 lakh received by the IT department daily from the director general, stamps and registrations for the year 2005-06. There were about 85,965 land registrations worth Rs 5 lakh and above in the first six months of the current financial year.
Disclosing these details, D V Dharmik, chief commissioner of income tax department, Hyderabad, said the department will collate the information available on these transactions with the returns filed by the persons to find out whether their filings reflected the actual income they earned from these transactions.
"Initially, we focus on big players in our ongoing scrutiny of real estate ventures and hope others will fall in line," Dharmik said.
According to him, the department has already collected the details of land registrations which were done in the last five years for the scrutiny.
The department has formed two exclusive teams to deal with real estate transactions.
Dharmik said that their officials would take up the scrutiny at three levels, first with the persons who submitted applications for project clearances regarding investments made in those projects.
At the second level, the IT officials would also question the persons who sold their lands to find out their liability towards capital gains tax.
Lastly, the department would try to find out the source of investment made by the persons in real estate projects.