Real estate deals above a huge amout in metros like Mumbai, Delhi, Chennai will be tracked by the IT (Income Tax) department, in its bid to intensify vigil over unaccounted black money floating in the system. The crackdown by the department will not only cover real estate firms, corporate Companies, HNIs (High Net Worth individuals) and big house and plot buyers.
The CIB (Central Information Branch), the custodian of the AIR (Annual Information Return ) database on high value transactions, is looking at these relatively larger real estate deals closely with definite intelligence that the prices reported of these transactions are gross underestimates.
Not only the real estate buyers and developers but the Income Tax department will also go after the property dealers who are party to such deals. The Income Tax department was also tracking funding sources of real estate developers, considering the black money component of the investments in the real estate sector.
The department is using various methods to gather details.
Not only the real estate buyers and developers but the Income Tax department will also go after the property dealers who are party to such deals. The Income Tax department was also tracking funding sources of real estate developers, considering the black money component of the investments in the real estate sector.
The department is using various methods to gather details.
According to Mr Prakash Chandra, Ex- Chairman of the CBDT (Central Board of Direct Taxes) “The department’s investigative wing conducts market surveys of the real estate sector. The sleuths could also approach the dealers posing as buyers to find the actual transaction prices, In many cases, the sellers don’t voluntarily offer a receipt on the actual value and demand that a portion of the consideration be paid in cash.”
The Income Tax department’s estimate is that in most property deals in metros like Mumbai, Delhi, Chennai etc about 50% of the transaction value goes unaccounted black money. This helps both the buyer and seller evade huge amounts of income tax.
In the finance year 2008-09, India unaccounted black money of Rs 2,000 crore was recovered from the real estate sector, according to the finance ministry’s intelligence department.
The Income Tax department’s estimate is that in most property deals in metros like Mumbai, Delhi, Chennai etc about 50% of the transaction value goes unaccounted black money. This helps both the buyer and seller evade huge amounts of income tax.
In the finance year 2008-09, India unaccounted black money of Rs 2,000 crore was recovered from the real estate sector, according to the finance ministry’s intelligence department.
In the last 2 financial years (2009-10 and 2010-11) the Income Tax department unearthed unaccounted income from various sectors, including real estate, of over Rs 15,000 crore in its search and seizure operations.
The Income Tax department , in the last 3 years conducted many search operations pan India level in real estate companies, for charges of alleged tax evasion or misreporting of income Such search operations held in Lodha group, BPTP, Kanakia Group, Paras and Amrapali group.
The Income Tax department , in the last 3 years conducted many search operations pan India level in real estate companies, for charges of alleged tax evasion or misreporting of income Such search operations held in Lodha group, BPTP, Kanakia Group, Paras and Amrapali group.
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