BANGALORE: Preliminary investigation by the income-tax department revealed that some taxpayers have not declared their Transferable Development Rights issued by the BBMP in the tax declarations.
"Certain assessees surrendered lands to the BBMP to get FAR/FSI credit in the form of Transferable Development Rights (TDRs) and subsequently sold them at a premium. The buyers of such TDRs in turn sell them at a huge premium. The database has been collected from IG Registration and BBMP. We noticed that in a number of cases, the assesses have not offered income/ correct income for taxation. On being confronted with facts, some assessees immediately come forward to pay the tax," said an official release from the I-T department.
"The database revealed that a number of assessees have understated the value of consideration with reference to transfer of immovable properties in the registered sale deed. The difference between the guidance value and the sale consideration cited in the deed needs to be offered for taxation as per Section 50C of the Income-tax Act, 1961," the department added.