HDIL asked to pay tax of Rs 100 crore

The Income Tax Department continued its raids for the second day in a row on the offices of Mumbai-based property developer HDIL and residences of some of its directors. The I-T Department held that there was additional income earned by the company to the tune of Rs 350-400 crore through the sale of transferable development rights. However the company argued that it is exempted from that under Section 80-IA and 80-IB, but the department did not agree with our argument.

The I-T officials said that the company is liable to pay an advance tax of Rs 100 crore at the rate of 30 per cent. We the company has agreed to pay that, for now. The raids started on Thursday morning went on till Friday evening. Over 150 I-T officers conducted raids on 20 premises of the company and its key officials’ residences.