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- Income Tax Department Eye India Realty Pie
Now, the Property Developers are under the lens of Income Tax Department.:D
Will these actions going to bring about any change in Builders' habit of amassing wealth and concealing it?Indian real estate, the common hunting ground for potential investors and builders has now caught the attention of income tax sleuths who are all set with their dragnet for builders who have not paid their share of corporate tax.
Apart from conducting search operations, investigation wing of the IT department carries all the data regarding the investments made by these companies. This has resulted in considerable tax deposits by property developers. The Omaxe Group deposited Rs.30 crore as tax. The group had not deposited any advance tax by December last fiscal. Parsvnath Builders deposited Rs. 50.8 crore, as against Rs 9.5 crore during the corresponding period last fiscal.
The initiative of the IT department has been successful in spreading ‘tax awareness’ among the well-off builders, says a senior official. It seems that the government has also set its eyes on the Indian real estate boom with an opportunity to gain a whopping amount.
Following in footsteps of the counterparts came the Eros Group and GTM Builders with tax payment of Rs 40 crore and Rs 20 crore respectively. The action came after the investigations conducted by IT officials.
The income tax department has received over Rs. 1,000 crore as additional tax deposits and the amount is likely to shoot up with the current boom in real estate and increase in housing loans.
Of the 25 corporate tax paying companies, eight are from the banking sector including the big names like State Bank of India, Punjab National Bank, and Bank of Baroda besides private sector banks like ICICI, Standard Chartered, HSBC, HDFC and Citibank.CommentQuote0Flag