Real estate players under scanner

NEW DELHI: Concerned over huge tax evasion in realty sector, the Income Tax department is likely to scrutinise tax returns of all real estate players, be it a property dealer or a builder, with annual turnover of Rs 5 crore in the current fiscal.

"The Central Board of Direct Taxes (CBDT) has asked the field Income Tax officials to sent scrutiny notices to all builders having an annual turnover of Rs 5 crore or more," a Finance Ministry source said.

An official comment from the ministry on the issue could not be obtained.

The source said through these notices, assessing officials could ask builders to appear before them to explain the sources of income, net profit, tax deduction at source (TDS). They could also be asked to disclose details of income and expenditure during past three years.

A decision in this regard was recently taken as part of the annual action plan of the department to take measures for meeting direct tax collections' target of Rs 2,67,490 crore and unearth black money in realty sector.

"It has also come to our notice that many builders are selling flats by taking money partly in cash, and not disclosing it in the annual returns," the source said.

He said though many builders were taking money from home buyers in advance, but they show income in tax returns after the completion of projects only. Information collected from banks was collated in this regard, he said.