In a notable move, the Income Tax Department emerged as one of the predominant real estate buyers during the previous year, launching an extensive expansion initiative aimed at improving taxpayer services across the nation.
The department has recently initiated a targeted campaign to scrutinize the prevalence of black money within the real estate sector, acquiring prestigious properties valued at approximately ₹2,500 crore in over 20 cities throughout the last fiscal year.
Among its most significant purchases is a high-value office space in the civic centre, situated in close proximity to the bustling marketing hub of Connaught Place, which cost more than ₹2,000 crore. This civic centre stands as the tallest structure in Delhi. Additionally, the department has invested over ₹89 crore in acquiring 56 staff quarters within the exclusive Bandra-Kurla complex located in Mumbai.
The Income Tax commissioner noted, "All the purchases have been conducted to bolster taxpayer facilities and enhance living and working conditions for the department staff. Undoubtedly, the department's purchasing power has been the most substantial this past financial year." With these acquisitions, the Income Tax Department has ostensibly established itself as the largest government entity for real estate procurement in the country.
The acquisition profile features several high-profile investments, including the establishment of a training center and hostel facilities for incoming Indian Revenue Service (IRS) personnel at their alma mater, the National Academy of Direct Taxes (NADT) in Nagpur, at a cost of ₹100 crore.
In Chandigarh, the Department procured 5,000 acres of land for office space at an expense exceeding ₹33 crore, while also investing more than ₹16 crore in a centrally air-conditioned office in Udaipur. Additional land acquisitions in Mumbai for new office construction amounted to approximately ₹23 crore, and land covering over 9,500 sq m in Jamnagar, Gujarat, was obtained for ₹8 crore to construct an office building.
Other acquisitions include an office building in Siliguri for ₹5.5 crore and separate developments for 49 residential sectors and guesthouses in Siliguri, exceeding ₹10 crore. Another significant investment was made in Muzzafarpur, Bihar for constructing staff quarters, aggregating more than ₹21 crore.
This aggressive expansion comes on the heels of robust direct tax collection, which totaled about ₹4.50 lakh crore during the 2010-11 fiscal year. Despite disbursing ₹72,000 crore in refunds, this direct tax collection remains the highest in the department's history.