IT dept plans to review real estate deals to check possible tax evasion
April, 19th 2011
The income tax department is planning to review real estate deals in the Capital to check possible tax evasion and black money flow in the sector.
I-T department will review the property deals in Delhi and take action in appropriate cases, Central Board of Direct Taxes chairman Sudhir Chandra told reporters here, adding that these reviews will include both individual and corporates property deals in Delhi and the National Capital Region (NCR - Noida, Gurgaon).
The move is based on past searches and surveys conducted by the department that saw maximum undisclosed income by real estate companies.
In the last three years, the income tax department conducted several search operations across the country in real estate companies, including the Lodha group, BPTP, Kanakia Group, Paras and Amrapali group, among others on charges of alleged tax evasion or misreporting of income.
In fact, according to reports prepared by the intelligence department of the finance ministry, the quantum of unaccounted money is highest in the real estate sector, around Rs 2,000 crore as per a 2009 report.
The departments move is also likely to bring the DDA Housing Scheme 2010 under its scanner. All deals under the scheme would be scrutinised by the I-T department.
Overall, in 2009-10 and 2010-11, the I-T department unearthed unaccounted income from various sectors over Rs 15,000 crore in its search and seizure operations.
In addition, around Rs 8,000 crore was detected by the department during surveillance of firms and individuals that suppressed their income during these two financial years.