The Income Tax (I-T) Department has detected alleged Tax Deducted at Source (TDS) violations during a two-day survey conducted at the offices of two real estate firms in Patna. Preliminary findings indicate a tax discrepancy of approximately ₹40–50 lakh, primarily arising from alleged non-compliance with TDS provisions under the Income Tax Act.
According to officials, the survey focused on an under-construction residential project at Saguna Mor, where investigators found multiple instances of alleged failure to deduct TDS on various financial transactions. The department stated that the firms did not deduct TDS on payments related to professional and other services, purchase of goods, sale and purchase of immovable property, contractual work, development agreements, and employee salaries, as required under the law.
The Income Tax Department has also initiated an assessment of potential capital gains tax liabilities linked to the projects. Officials said the two companies are currently executing real estate developments at four to five locations across Patna, with the combined project expenditure estimated at nearly ₹50 crore.
Based on the financial records examined so far, authorities have estimated the initial tax liability at ₹40–50 lakh. However, officials clarified that the assessment remains preliminary and the exact amount of tax payable will be determined only after a detailed examination of financial documents and completion of the assessment proceedings.
The department noted that the investigation is still underway and additional discrepancies, if any, may emerge during the scrutiny of books of accounts and supporting records. The final tax demand, if applicable, will be issued after the assessment process is completed in accordance with the provisions of the Income Tax Act.
The action highlights the Income Tax Department’s continued focus on strengthening tax compliance in the real estate sector, particularly in relation to TDS obligations. Timely deduction and deposit of TDS are key statutory requirements designed to ensure proper tax collection and improve financial transparency in business transactions.
Non-compliance with TDS provisions can result in additional tax liabilities, interest, and penalties, making adherence to these requirements important for developers and other businesses operating in the real estate sector.
The ongoing investigation will determine the extent of the alleged violations and any consequent tax liabilities arising from the surveyed projects. Officials have indicated that further action will depend on the findings of the detailed assessment and verification of the companies’ financial records.
