Bhopal’s booming realty sector now under tax scanner
Realty deals in Bhopal will now be under scrutiny of tax officials after the MP capital was selected among eight cities where the Income Tax department will mount a special vigil to check black money.bhopal Updated: Aug 13, 2014 14:50 IST
Realty deals in Bhopal will now be under scrutiny of tax officials after the Madhya Pradesh capital was selected among eight cities where the Income Tax department will mount a special vigil to check black money.
Particularly under scanner will be the capital gains made through sale of immovable assets. The directorate of intelligence and criminal investigation of the Central Board of Direct Taxes (CBDT) will head the vigilance project in an effort to widen the tax base and check black money.
Property market has shown a massive upswing in Bhopal during past few years. The National Housing Bank's property price index (RESIDEX) recently reported that property prices have more than doubled in Bhopal in the last seven years.
The I-T vigil on property deals in city is expected see at least a partial backtracking by potential investors. The move is likely to reduce the pumping of black money into the property market since tax sleuths can now seek detail of income sources from investors at will.
Sources said the decision to undertake the pilot projects was taken by the top officials of the CBDT and the I-T department during the two-day conference of chief commissioners and directors general of the department in New Delhi recently.
Apart from Bhopal, the other cities under IT scanner would be Bangalore, Chennai, Kolkata, Pune, Kochi, Lucknow and Guwahati.
The director of investigations, IT, Bhopal, KC Ghumaria could not be contacted for comments despite repeated attempts.