Pune Developers Under Scrutiny for Tax Waiver Claims
Twelve real estate developers in Pune are facing investigation by the Income Tax department for allegedly misusing the 80-I-B10 provision, which grants a 100% waiver on low-cost government housing schemes. The department alleges these developers have made spurious claims amounting to Rs 65 crore, although the identities of the developers in question remain undisclosed.
"We will be issuing them notices. We will give them a chance to present their case," stated M Narasimhappa, Chief Commissioner of Income Tax, Pune, in a media address.
Concerns Over Non-Banking Financial Transactions
Narasimhappa also voiced his apprehension regarding the transfer of funds via cash cards by non-banking financial consultants. He expressed concern over the scale of these transactions, stating, "Thousands of crores are being transferred through this route. An assessment is on." He further elaborated on the various cards utilized for such dealings, citing examples like ITZ and Don. According to the Income Tax Department, insight into these transactions is essential, and they insist that these details should be reported in annual income returns.
Market Slowdown Impacts Tax Collection
The Chief Commissioner acknowledged a noticeable market downturn, predicting its potential effects on tax revenue within the Pune region. "Though there has been a 19.7% growth in the overall tax collections in August 2008 over the previous year, the collections have dipped this year because of market slowdown. Last year saw a 38 per cent increase in tax collections; but this year till August 11, it is just 19.7%,“ Narasimhappa explained. He detailed the collection figures, highlighting the increase from Rs 2767.9 crore in 2006-07 to Rs 3,312.4 crore in 2007-08. However, the commissioner anticipates a significant drop this year, projecting collections to be “50% less” due to the slowdown affecting the manufacturing and automotive sectors in Pune.
Champion Idea Trophy Contest Launched
In a separate development, the Income Tax department has announced a new initiative – the Champion Idea trophy contest – for its officers and staff. This contest aims to solicit, inspire, and recognize creative and innovative ideas regarding revenue enhancement, improved taxpayer services, staff welfare, and administration.