During multiple raids conducted over the weekend against two real estate groups of the Delhi NCR region, the Income Tax Department (ITD) has unearthed black money worth over Rs 215 cr from them. These builders were selling land and farm houses on the Yamuna plains to high-end investors in the national capital.
Sleuths of the Delhi investigation wing of the department searched and surveyed a total of 33 premises of the two property developers, whom they did not identify. They said the two developers mostly dealt in cash while striking these deals and thus evaded income tax along with their clients, who are now under the ITD scanner.
The developers used to file their IT returns based on the sale of the property on actual circle rates, while the worth of actual transaction used to be much higher.
The difference between the circle rate and actual rates used to settled in cash which represented the unaccounted and undisclosed income of the sellers. This modus operandi was being used by the promoters of the real estate business and their clients for many years to hide their "true income" from the tax department.
The IT department is now scrutinising the list of the wealthy and high-net worth individuals who were using their black money to buy these land and farm house in the Yamuna plains in the national capital region.
The IT department is planning to file tax evasion prosecution compliance against these people and will also separately prosecute them under the IT laws that bans accepting a cash amount of over Rs 20,000 for selling an immovable property and this violation attracts a 100 per cent penalty on the amount of tax evaded.
Also, holding cash of over Rs 2 lakh is now banned and hence the department will penalise the erring assessees for this violation too, they said.