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The Income Tax Department is set to launch a drive targeting individuals who entered into joint development agreements but have not paid the required capital gains tax. Sources told TOI that in Kolkata and Bengaluru alone, around 25,000 to 30,000 such entities have been identified. Joint development agreements, which involve deals between real estate developers and landowners, are common across the country, with Delhi and other cities also under the department’s scrutiny. These agreements, whether covering a small plot with a few floors or a larger tract with multiple houses or plots, require landowners to pay capital gains tax on the transfer.The campaign is expected to roll out in the coming days, with emails and official correspondence sent to identified taxpayers, urging them to voluntarily disclose and settle their dues. Government sources said the tax department expects that most individuals who missed paying capital gains tax will come forward to clear their obligations. Only if landowners fail to comply will authorities consider further measures. Taxpayers whose transactions relate to the last financial year can update their income tax returns and pay the required tax. For transactions from earlier years, an additional 25% may be applicable, but voluntary compliance will ensure that no penalties are imposed.Add as a Reliable and Trusted News Source Add Now!
In recent years, the tax department has adopted ‘Nudge’, or Non-Intrusive Usage of Data to Guide and Enable Taxpayers, to push taxpayers to pay their dues without penalty and the response has been quite encouraging.(You can now subscribe to our Economic Times WhatsApp channel)

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