Raids in Delhi: I-T dept unearths Rs 215-crore undisclosed cash transactions

The developers used to file their I-T returns based on the sale of the property on actual circle rates but the actual transaction was priced “much higher.” “The ostensible price of the farmhouses was registered and recorded based on circle rates of agricultural land prevailing in that area but the price charged was much higher. The difference between the circle rate and actual rates was settled in cash which represented the unaccounted and undisclosed income of the sellers,” a senior official said.

He added that this technique was being used by the promoters of the real estate business and their clients for many years to hide their true income from the tax department.

The department is now scrutinising the list of the wealthy and high-net worth individuals who were investing their black money into these land and farmhouse investments near the Yamuna floodplains in the national capital region.