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  Metros   Mumbai  24 May 2017  Redevpt blgs flat owners miffed with Rs 200 crore I-T notices

Redevpt blgs flat owners miffed with Rs 200 crore I-T notices

THE ASIAN AGE.
Published : May 24, 2017, 1:30 am IST
Updated : May 24, 2017, 1:30 am IST

The residents have challenged the notices, stating that tax should not be levied on two parties for the same transaction.

I-T department sent notices to six societies in Kalanagar.
 I-T department sent notices to six societies in Kalanagar.

Mumbai: Residents of six housing societies at Kalanagar in Bandra that have opted for redevelopment are engaged in a tussle with the income-tax (I-T) department, which had sent notices, asking to them pay tax on the corpus fund and the compensation that societies and their individual members receive from developers in case of redevelopment.

The residents have challenged the notices, stating that tax should not be levied on two parties for the same transaction and if the society’s members have paid tax individually, the society should not be made to pay it.

 

“The I-T department cannot have double taxation for the same transaction. The developer had paid all these societies’s residents between Rs 50-80 lakh five to six years ago and they paid tax for the same. Now, the I-T department is asking money from the societies too, with penalties. It is not fair. Where are we supposed to pay for this from? The I-T department has been harassing us for many months over this,” said the secretary of one of the societies.

However, the I-T department, in a notice, has contended that the compensation given to the members was just a means for the societies to evade taxes and that it (the compensation) was part of the corpus fund that the society was to get, and tax should be paid by both, the members and the societies.

 

Jimmy Francis, a resident of one of the societies, said, “Initially when we took advice from our chartered accountants and lawyers there were varied opinions on the matter. One of the societies had gone to court, which stayed the I-T department’ notice. Many have filed an appeal with the I-T department, expecting justice. The next hearing is in June.”  

Residents have said that they have also written to the Central Board of Direct Taxation (CBDT), informing it that there should be some policy when it comes to societies paying tax in case of redevelopment.

“Thousands of societies are opting for redevelopment in the city and we are confident that they too must be facing similar issues with the I-T department,” said a resident, who did not wish to be named.

 

Tags: income-tax department, kalanagar, redevelopment
Location: India, Maharashtra, Mumbai (Bombay)