On Tuesday, the Income Tax department of India carried out searches and raids at several real estate companies located in Hyderabad, as per multiple media reports. The department is investigating the firms for potential tax evasion.
Even though the Income Tax Department has not yet released any official statement about the operation, various sources told news agencies that the searches carried out on Tuesday were reportedly part of a broader investigation. It is currently unclear if any evidence of tax evasion has been found against these firms or if further action will be taken by the department.
The searches were carried out simultaneously by 20 teams of Income Tax officials, in a coordinated manner across different locations to ensure a thorough search for any potential evidence of tax evasion.
Officials conducted searches in offices of Royal City, Googee real estate firm and numerous other real estate companies.
One of the major real estate firms in Hyderabad is Googee Properties. The company is known for its vast portfolio of completed projects that include King Farm Meadows, Dollar City, Royal City, Royal City II, and Yadadri Pearl City. These projects have helped establish Googee Properties as one of the largest and most successful real estate firms in the region.
In the past few weeks, the Income Tax Department has carried out multiple searches at various locations in Hyderabad, following reports of large financial transactions involving real estate firms in the city. The majority of real estate transactions in India involve cash payments, which are often unaccounted for and not reported to tax authorities.
The department is conducting these searches to uncover any instances of unaccounted money and verify the legality of these transactions. The back-to-back raids suggest that the Income Tax Department is taking a proactive approach to tackling tax evasion in the real estate sector and is committed to ensuring that all transactions are transparent and in compliance with tax laws.
In January 2023, the department conducted searches at offices of Oorjita Builders and Developers, Sri Aditya Homes and other firms.
Under section 132 of the Income Tax Act, 1961, the IT department has power to conduct searches and seizures when there is reason to believe that a person or firm has undisclosed income or assets.
