Taxmen don't spare builders, conduct surveys in NCR, Mumbai

I-T department surveyed some real estate developers in NCR to check reports of alleged profiteering and tax evasion by these entities

A week after ban on high value currency notes, Income Tax department has set its sights on real estate firms in National Capital Region where cash component and quantum of investors is high in property deals.

The I-T department on Wednesday surveyed some real estate developers in the NCR to check reports of alleged profiteering and tax evasion by these entities while converting the recently demonetised currency notes, reports said.

Agency reports quoting I-T officials said the department conducted the exercise on at least four such entities in the Delhi-NCR region and visited over half-a-dozen premises.

Officials added the department also scanned some records of some previous sales made and have asked the officials of these firms to produce the records at a later stage.

 

“A team of tax officials have visited our office premises and they are inspecting the company books and accounts. It is a routine exercise done by them,” Amrapali Executive Director Shivpriya told news agencies.

Asked whether the survey was linked to the illegal usage of demonetised Rs 500 and Rs 1,000, Shivpriya said: “We sell affordable homes which are largely funded by customer home loans. I-T officials have not found any cash.”

Another group and real estate brokerage firm called it a “normal” operation.

“They (tax officials) came to check if we are accepting cash or not. We are doing legal business. We deal in primary market where there is no cash,” Investors Clinic Infratech Private Limited Founder and CEO Honey Katiyal  told agencies.

Under the survey action, the tax sleuths visit business premises of the trader/operator and make analysis of the available stock and record it, whereas under search operations both residential and business premises are visited by the taxman.

A Mumbai based developer who is also on realtors body Credai, said even if I-T department finds old currency notes at the premises of developers, they are "just piece of papers and not legal tender".

He said most of the reputed developers deal in cheque.

However, another developer in Mumbai developer just I-T action is clearly reflective of the perception that real estate developers deal with black money.

"The government' has all the right to check and punish who deal with black money," he said.