Recovery survey at builder’s firm
The income tax (I-T) department conducted recovery survey at the firms of two builders and seized documents pertaining to their income and other things. The recovery survey was conducted in the last 72 hours at two places in Varachha and Katargam. The two builder groups were surveyed in the beginning of the financial year 2010-11 and they had assured the I-T department that they would pay the taxes before the financial year-end. The income tax (I-T) department asked them to pay up the advance taxes before March 14.
According to source, these two builder groups were surveyed in the beginning of the financial year 2010-11. Both of them had disclosed the unaccounted money and assured the I-T department that they would pay the taxes before the financial year-end. As per the new methodology applied by the department, all the documents were seized before the recovery survey ended and instruction to pay up were issued.
The source, however, said that if the parties disclose something during the survey and show it under Section 80 I, it means that it’s their additional income exempted from tax. An official from the department said that many firms take advantage of this clause and declare income at the time of survey and get away from paying taxes by showing it under Section 80 I. Declaration of this income should be made in the form of investment and not in the form of income, the source added.
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