Income Tax Department to Target Tax Evasion in Joint Real Estate Deals

The Income Tax Department is preparing to launch a targeted campaign to address tax evasion related to capital gains from joint development agreements in the real estate sector. The department has identified a significant number of such cases, with estimates of 25,000 to 30,000 in Kolkata and Bengaluru alone. Joint development agreements, where landowners collaborate with developers, are a common practice across India. The tax authorities will be sending out communications to these taxpayers, urging them to voluntarily declare their income and pay the due taxes. This "nudge" approach aims to encourage compliance without immediate punitive action. For recent transactions, taxpayers can update their returns, while older cases might involve an additional payment.