According to the Income Tax authorities, two real estate developers from Bengaluru and Hyderabad were involved in deals that involved undeclared capital gains and possible tax evasion.
The two real estate groups, which are involved in the business of building, sale and leasing of commercial and residential space, as well as educational and hotel services, were the targets of search activities. More than 40 locations in Bengaluru, Hyderabad, and Chennai were subject to the search.
The government claimed that during the search, incriminating documents and digital data were seized. A preliminary examination of the data revealed that some landowners had signed joint development agreements with a developer based in Bengaluru. Instead of the land that was provided to the developer to create numerous projects, they received a highly developed area from the developer. Despite having secured completion certifications for the projects, the land owners did not disclose the capital gains resulting from the transaction. The department assessed that these hidden capital gains total more than Rs. 400 crore.
Initial examination of the confiscated documents revealed that these organisations are accused of concealing profits totaling Rs. 90 crore from the sale of real estate units, according to the department.
The authorities claimed that both organisations overcharged for construction materials and claimed fictitious purchases to inflate their costs in the construction and development industry to the tune of Rs. 28 crore.
The primary entities of both groups were determined to have routed interest-bearing borrowed money to affiliated parties for non-business activities. According to the department, it was discovered that the trust involved in the search action failed to use the total sum of Rs. 40 crore for the designated purpose as stated in the registered trust deed within the allotted permissible time frame. According to the government, the search action has so far resulted in the recovery of $3.50 million in hidden cash and Rs. 18.50 million worth of jewellery.
Image Credit: istock
💫FOLLOW US FOR MORE UPDATES. ❌WE DO NOT HAVE IRRITATING AND SPAMMY NEWSLETTERS. ✅EVERYTHING IS AND WILL BE FREE FOREVER. SEE YOU AGAIN IN YOUR STORIES AND FEED 🙂
IT should make the rules and regulations even more stringent so that tax evasion can be avoided. Very good content by cni
Income Tax department should stringent the Rules & Regulations , To Avoid this kind of Tax Evasion Issues
Good work by the income tax department. Nice article coverage