Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TDS :: list of goods taxed at 4% :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: form 3cd :: empanelment
Direct Tax »
  CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 CBDT unveils norms for computing FMV of trust assets
 CBDT starts issuing second round of Certificates of Appreciation to tax payers
 Income Tax Department Launches SMS Alert Service on TDS Deductions
 Salaried taxpayers to get SMS alerts for TDS deductions
 Salaried tax payers to get SMS alerts on TDS deductions
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair

I-T Department to tackle tax evasion in real estate secto
January, 01st 2013

The Directorate General of Income Tax (Investigation), Karnataka and Goa, is now training its radar on the booming real estate sector, particularly in Bangalore.

The directorate has found that over 3,500 land owners have entered into joint development agreements with developers in Bangalore in the last couple of years, said S. Ravi, Director-General of Income Tax (Investigation), Bangalore. The directorate has also detected one lakh cases of devalued registration of properties between 2006 and 2011, he said.

Mr. Ravi was interacting with presspersons here on Monday along with Chief Commissioners of Income Tax, Bangalore I and III, K. Satyanarayana and I. Suresh Babu. He said there have been hundreds of instances of joint developments of properties with sellers appearing to be 'ignorant' of tax implications.

He said a valid contract for sale, with a consideration and handing over of the possession of the property to the developer, results in tax liability.

However, the tax is not paid, perhaps owing to lack of awareness, Mr. Ravi said. The year of agreement is the year of tax liability, and this proposition has been upheld by the Karnataka and Bombay High Courts.

In November, inquiries by the directorate revealed that 180 such transactions were made and the practice was rampant. In two cases alone, an evasion of Rs. 255.38 crore tax was detected, Mr. Ravi said, and added that it was an ongoing process.

Meanwhile, the directorate is also looking into devalued registration of properties, where the properties are registered below the guidance value set by the State government. “In such cases, we consider the guidance value as the sale price and compute tax liability on its basis,” Mr. Ravi said. Owners selling such lands are liable to pay capital gains tax. The directorate advises them to pay the tax, Mr. Ravi said.

Airport surveillance

The directorate had also investigated possible tax evasion in the mining sector. It has set up a mechanism at the Bengaluru International Airport to monitor and intercept the movement of unaccounted cash and valuables, including jewellery. It is also zeroing in on various financial transactions, including banking, mutual funds, investments on immovable properties and shares, without the investors quoting the PAN.

Tax collection hit

Mr. Satyanarayana said the ban on iron ore mining has brought down tax collection by about Rs. 3,000 crore and the impact was more in Goa region as compared to Hubli/Bellary in Karnataka.

The Karnataka and Goa region has stood third in tax collection, after Mumbai and Delhi. The target for this financial year is Rs. 53,000 crore and Rs. 32,830 crore has been collected so far.

Though this is higher than last year’s collection of Rs. 30,328 during the same period, it is less than the national average of 14 per cent, Mr. Satyanarayana said.

He said a large number of government departments have not been remitting tax deducted at source to the I-T department. Also large corporates are shying away from paying advance tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions