I-T Department Targets Landowners for Tax Evasion

21 Nov 2024 CW Team

The Income Tax (I-T) Department is intensifying its scrutiny of landowners who are found to be evading capital gains tax through joint development agreements (JDAs). As part of a crackdown on tax evasion in the real estate sector, the department is targeting landowners who fail to report their share of capital gains on properties involved in joint development projects.

In a joint development deal, landowners typically contribute their land for development, and in return, they receive a portion of the constructed property or its value. However, many landowners have reportedly avoided declaring the income generated from these agreements, especially the capital gains arising from the sale or transfer of land. This has led to the I-T Department stepping up its efforts to ensure that these transactions are properly reported and taxed.

The department is using various tools to detect such evasion, including data mining, cross-checking property records, and investigating discrepancies in the declarations made by landowners and developers. The scrutiny has been ramped up as the government aims to boost tax collections and curb the growing trend of underreporting income from high-value real estate transactions.

Landowners who are found guilty of evading taxes could face significant penalties, including hefty fines and interest charges on the unpaid tax. The I-T Department's actions serve as a warning to others involved in similar deals to ensure they comply with tax regulations and properly report their earnings from joint development agreements. This crackdown is expected to bring more transparency to the real estate market and contribute to increasing tax revenue for the government.

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