Income Tax Department News Bomb: Owners Of Luxury Homes Are Target

Hyderabad, July 10 (Maxim Mews):  The Income Tax Department in the country is always trying to stay one step ahead.  The Income Tax Department, which has so far relied on technology and AI to combat tax evasion, is now looking to target the wealthy who are physically hiding money from taxes.

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In this contest, the Income Tax Department has brought in new inspection teams targeting people with luxurious houses.  These teams have been brought in to find undisclosed money invested in luxury houses in cities and to calculate the said properties.  It has been revealed that these special teams will continue to raid the cities of Delhi, Mumbai,  Kolkata and Madras.  These special teams have been appointed in line with the Prime Minister’s 20 point economic program.  Tax experts warn that more teams are likely to cover other metropolitan cities like Hyderabad, Bengaluru and Pune in the coming time.  

These special tax teams collect complete details of the properties, including the land, its sale price, foundation area, and number of floors built.  With this, the task officers and executive engineers who come to inspect the property, as provided by the owner, immediately report any discrepancies in the value calculated during their inspections. If the inspections find that the valuation is 15 percent or Rs. 25,000, the Income Tax Department will initiate penalty or tax collection proceedings in this regard.

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Each inspection team will have to submit fortnightly reports on the action taken by the concerned Income Tax authorities.  The appointment of these special teams is in addition to the steps taken by the Income tax authorities to detect tax evasion through under valuation of properties for sale.  This means that the Income Tax Department will deploy a special team to deal with tax evasion by showing fluctuations in property values at the time of sale or purchase.  The government hopes that this will help in identifying investments, unaccounted money and black money that are really flowing into the real estate market.  (Maxim News)             

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