« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  PAN reform under way, says Chidambaram... FM to take up annual returns with I-T bosses... » I-T dept closes in on realty misuse July, 04th 2006 The income tax department has unearthed large scale misuse of the deduction on profits available under Section 80IB of the Income Tax Act by developers and builders of housing projects. The booming real estate sector seems to have spurred on the misuse of a deduction that was originally given to encourage construction of houses for the low and middle income groups. Sources said the misuse had mostly occurred among smaller builders and was rampant in cities like Bangalore and Mumbai. IT authorities have uncovered over Rs 200 crore worth of undisclosed income after conducting 60 surveys across the country in the last financial year. The deduction is contingent to the fulfillment of certain conditions including a cap on the size of the residential unit. Under the section, a residential unit cannot have a built-up area of more that 1,000 sq ft in cities like Delhi and Mumbai and 1,500 sq ft at other locations. Also, the built-up area of shops and other commercial establishments included in the housing project cannot exceed five per cent of the aggregate built-up area of the housing project or 2,000 sq ft, whichever is less. Sources added that in several cases, the misuse of the provisions was on account of the builders showing or declaring one flat as two separate flats in order to maintain the flat size restriction. In other cases, the commercial area was found to have exceeded the five per cent built-up area. The misuse has assumed serious proportions and is likely to be discussed at the annual meeting of the chief commissioners of income tax on Tuesday.