Income-tax Heat On Builders For Forged Claims On Waivers

Pune: Twelve city-based real estate developers are in the dock with the income tax department for wrongfully claiming a 100% waiver, under 80-I-B10, on low-cost government housing schemes. The I-T department said these developers claimed false tax waivers worth Rs 65 crore, but declined to disclose the identity of the erring builders.

“We will be issuing them notices. We will give them a chance to present their case,” said chief commissioner of IT, Pune M Narasimhappa while speaking to the media.

The chief commissioner expressed concern on transfer of money by non-banking financial consultants through cash cards. “Thousands of crores are being transferred through this route. An assessment is on. There are many cards in the market such as ITZ and Don that are used for such transactions. The department wants to be intimated of such transactions and want it to come in the annual income returns,” said Narasimhappa.

He said that there is a slowdown in the market that is likely to impact tax collections in the Pune region. “Though there has been a 19.7% growth in the overall tax collections in August 2008 over the previous year, the collections have dipped this year because of market slowdown. Last year saw a 38 per cent increase in tax collections; but this year till August 11, it is just 19.7%,” he said.

Collections in 2006-07 that stood at Rs 2767.9 crore had touched Rs 3,312.4 crore in 2007-08. “Collections are likely to be 50% less this year, with a slowdown in the manufacturing and automotive sector in Pune,” he said.

The income tax department has also come out with the concept of a Champion Idea trophy contest for the officers and staff.

The idea is designed to invite, encourage and promote creative and innovative ideas in the fields of increasing the revenue, better services to taxpayers, staff welfare and administration.

2 Comments

  1. Posted August 29, 2008 at 5:12 am | Permalink

    The State government has announced that revision in property tax as in Mumbai would come into effect before the end of the year. For this purpose, instead of waiting till December when the state Assembly is supposed to pass a bill amending the relevant law to change the property tax assessment system, the government will soon promulgate the ordinance. The amendment to the Mumbai Municipal Act would mean the property tax would go up in the city and reduce considerably in the suburbs. Now, the city will have to pay property tax on the capital value instead of rateable system followed until now.For more view- realtydigest.blogspot.com

  2. Posted September 23, 2008 at 12:58 am | Permalink

    Income tax sleuths raided the residences and office premises of leading builders and investors to unearth evidence of irregularities in land deals.

    Twenty-five premises were searched and Rs.10 million in cash was seized, statement from the Directorate of Income Tax (Investigations)

Post a Comment

Your email is never shared. Required fields are marked *

*
*