Andhra Pradesh - Hyderabad   

An I-T `hitch' for land deals

Special Correspondent

Income Tax Department is collecting information from other wings on real estate dealings involving more than Rs. 5 lakhs

HYDERABAD: People going for real estate deals in and around twin cities beware! Following the recent boom in the real estate business, the Income Tax department has set its eyes on the deals to improve its collections from the sector.

The IT department has started collecting information from all departments including the Hyderabad Urban Development Authority, Town Planning wing of Municipal Administration department, details of lands under the Urban Land Ceilings Act as well as the Inspector General of Registration and Stamps. It has has obtained details to 1,158 real estate projects of HUDA, 1,095 projects of Town Planning and 12,000 projects that secured ULC clearances.

Addressing a press conference, Chief Commissioner of Income Tax, Hyderabad-I, D.V. Dharmik said the department had data pertaining to 1,87,831 land transactions that were worth more than Rs. 5 lakh the previous year while the number had already touched 86,000 this year.

Three-stage approach

The department had decided to adopt a three-pronged approach to assess the value of the transactions. It would first approach the persons who purchased lands and then those who sold them.

The third stage would involve getting details of the source of investment from the people who purchased the land. "We are in the process of getting in touch with banks and stock exchanges in addition to the investments made in vehicles and fixed deposits," he said.

The department was also in the process of gathering information about the payments made to contractors of various irrigation projects by the Government as such payments were subject to tax deduction at source. While the compensation being paid to those losing lands was not subject to income tax, the interest accrued on the compensation amount was subject to TDS.

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