Noida: In a first, taxmen do a search of paying guest facilities, hostels
In a first in the city, the income tax department searched five paying guest (PG) accommodations and hostels in Noida’s sector 126-127.noida Updated: Sep 06, 2016 13:30 IST
In a first in the city, the income tax department searched five paying guest (PG) accommodations and hostels in sector 126-127. The searches were conducted at the facilities owned by former farmers who had received a heavy amount of compensation of their land after acquisition.They had constructed dozens of rooms on their property and rented them out to students of private universities.
The department suspect a huge turnover from these hostels and paying guest facilities though the owners have not filed any returns and nor have they declared their revenue.
“The survey is still on so we cannot disclose the details,” said T Tonsing Prasad, principal commissioner, Income Tax department, Noida.
The department claimed that this is the first time in the state that PG facilities and hostels were being searched on suspicion of tax evasion and disproportionate assets.
“Former farmers have constructed dozens of rooms. They have rented out each room to three-four students at Rs 10,000 -15,000 per month. It is estimated that some PGs are earning more than Rs 50 lakh to Rs 1 crore in one year. There is no record of the money as the owners only take cash payment and hardly deposit it in the banks,” a senior IT official said.
According to an official figures, over one lakh residents of Noida and Greater Noida are under the scanner for not filing income tax returns.
“The central office of the IT department in Delhi issued seven lakh notices. The Noida office has issued notices to 25,000 residents who declared their permanent account number (PAN) during transactions and over 90,000 who did not declare the number during transactions,” the official said .
Many of these defaulters are owners of paying guest facilities and hostels near private universities of Noida, the official said.
“The survey is likely to continue till late night as the details of the transactions are written in raw registers,” he said.
Officials said the department has also found a surge in purchase of luxury cars, costing Rs 25 lakh and above, in the satellite city. Many of those who bought these cars neither file the IT returns nor submitted PAN, the officials said.