I-T discover to 850 for not paying capital features tax

PATNA: The income tax (I-T) department has served notices to 850 landowners in and around the state capital for evading capital gains tax and asking them to file returns by March 31 this year, said principal chief commissioner of income tax (Bihar & Jharkhand) K C on Saturday.
He said the landowners in the two states have been signing development agreements with builders to develop residential complexes or shopping malls on their plots, but not paying accrued ‘capital gains tax‘ on the developed areas. “This tax-evading practice is more prevalent in and around Patna. This has led to an estimated tax evasion of around Rs1,000 crore in urban locations of Patna district alone,” Ghumaria said at a press conference.

He said the income tax department recently collected documents of 1,558 development agreements between landowners and developers from the offices of different sub-registrars (land registration) in Patna district. In more than 95% cases, capital gains tax had not been paid by the landowners, though developers paid taxes in most of the cases.

He said these 1,558 agreements are related to the land in and around Patna and its neighbouring locations like and Bihta. Out of the 1,558 agreements under scanner, income tax notices have been served to 850 landowners asking them to file capital gains tax returns by March 31 this year.

Ghumaria said similar exercise of collecting development agreements were going on in Muzaffarpur, Gaya, Bhagalpur, Darbhanga, Ranchi, Jamshedpur, Dhanbad and . “Cases of evasion of capital gains tax by the landowners have been detected in these towns also, but the details are still being compiled,” he said.

The principal CCIT also said the Centre has fixed a target of income tax collection of Rs13,200 crore in FY 2017-18 from Bihar and Jharkhand. “Around Rs9,000 crore as income tax has so far been collected,” he said.

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