I-T Department Targets Landowners for Tax Evasion
Real Estate

I-T Department Targets Landowners for Tax Evasion

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code