Property owners in Patna, who have given their land to builders or promoters for development and taken a share in terms of flats in an apartment building, are on the Income Tax (I-T) department’s radar. Many of them have been served notices for not paying tax against capital gains.
The assessment wing of I-T department, Bihar, has taken up for assessment 1,200 land development agreements or deeds involving land owners and builders for constructing apartments in the last several years.
Of them, 856 deeds have been analysed and 574 cases reopened under section 147/ 148 of the Income Tax Act to recover taxes from the owners who did not pay up even after acquiring flats in any apartment building as part of their share against land given to builders for developing it.
“Many property owners, who have received flats in lieu of the cost of land given for development, are under the wrong impression that they are not liable to pay any taxes. But, the rules on this are very clear. So, we have started assessment of land development agreements,” said a senior I-T officer, in the know of the matter.
Sources said a section of property owners, who were slapped notices, have challenged the I-T order, claiming they were not liable to pay any taxes as they had not sold their property. However, the I-T department has refuted this contention.
In recent times, the state capital has witnessed a surge in land development through builders/promoters after signing of agreements. I-T officials said they were keeping a close watch on registration offices to collect details of such agreements so that beneficiaries of property transactions could be brought under the tax net.
Officials said the department would reopen another lot of 500 cases in next few days as the first phase of land agreements’ verification had been completed. “While 574 out of 1,200 cases taken up for assessment have been reopened, we will slap notices regarding another lot of 500 cases in the next few days. In rest of the cases, tax notices would be served by mid-August,” said a senior I-T officer.
Sources said the income tax department expects to collect crores of rupees as taxes against capital gains from property owners. “Tax assessment has been made on the value of flats and also taking other factors into consideration. The tax amount is different in each case and could fetch taxes amounting to several lakhs of rupees,” said another I-T official.
First Published: Aug 20, 2018 14:29 IST