look news india
The Income Tax Department has investigated a capital gains tax case against land owners who entered into joint development deals with builders.
The central direct tax body has asked the investigation wing of the income tax department across the country to probe the agreements in which individuals and Hindu undivided families have struck a deal with builders regarding development and completion or occupation certificates (CC-OCS). . Tax has not been paid by him even after receiving capital gains on the building.
Usually CC-OC is issued by that local municipality after the construction is completed. The Central Board of Direct Taxes (CBDT) has directed senior officials of the IT investigation wing of various cities to collect data of CC or OC issued in the financial years 2020-2021, 2021-22 and 2022-23. It has come to the notice of CBDT that in many cases capital gains tax has not been paid by the land owner despite being eligible. This is the first exercise of data collection of CC-OC by the tax department. In which a joint development agreement has been entered into by the eligible parties. Also such data will be sent to the concerned authority for appropriate action. Taxpayers were repeatedly urged by CBDT to pay the unpaid tax as per the year of receipt of CC-OC. So that the punitive action can be dismissed. It may be noted that the owner of land or property who has entered into a joint development agreement with the builder is eligible to pay capital gains tax under Section 45 (five-A) of the IT Act. The long-term capital tax rate is 12.5 percent. Whereas the rate of short-term capital gains ranges between ten percent to 39 percent depending on the income slab.