Do real estate firms file income tax returns regularly? I-T department doesn’t know: CAG report – The Financial Express

No mechanism exists with the Income Tax Department (ITD) to ensure that all the registered companies have PAN and are filing their Income Tax Returns (ITRs) regularly, a Comptroller and Auditor General (CAG) noticed in audit observations. The government’s auditor tabled the performance audit on ‘assessment of assesses in real estate sector’ in 2018 in Parliament on Tuesday.

The performance audit covered cases of scrutiny assessments relating to realty sector completed by ITD during FY14 to FY17.

Besides, the system in the I-T department to ensure compliance of filing of ITRs by the sellers of high value immovable properties was not effective, according to the audit observations by CAG. A mechanism was also missing with the department to make sure that persons involved in high value sales of immovable properties offered capital gain for tax, it added.

“There is a multiplicity of criteria for classifying housing projects for EWS/LIG groups by the Government of India on the basis of the size/affordability of the dwelling units. The purpose of providing deduction under section 80-IB(10) for better availability of housing to EWS and LIG section of the societies was not being met to the extent that the prices of dwelling units were out of reach of these target groups,” CAG also noticed.

Adding, the government’s auditor said: “Enforcement of conditions for allowing deductions under section 80-IB(10) was weak, leading to benefits being availed by non-eligible persons/ unintended groups. Thus, the targeted groups could not be benefited and the revenue foregone on this count year after year by the Government may have benefitted unintended persons.”

via Do real estate firms file income tax returns regularly? I-T department doesn’t know: CAG report – The Financial Express

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