A recent report from Comptroller and Auditor General revealed some surprising data regarding Income Tax returns filed by the Real Estate companies in India. The CAG report stated that around 95 percent of the companies, registered under the Registrar of Companies (ROC), do not have PAN( Permanent Account Number) and ROC don’t have much relevant information regarding these companies.
“ROCs did not have information about PAN in respect of 51,670 (95 per cent) of a total of 54,578 companies for which data was made available to Audit,” the CAG report said. “It was difficult for Audit to ascertain from the information obtained from ROCs whether these companies were in the tax net of the ITD (Income Tax Department) or not except in case of Andhra Pradesh & Telangana where Audit could identify PAN in respect of 147 of these companies.”
CAG sent the data received from ROC to Income Tax Department (ITD), but no reply was given by ITD. As per the rules every real estate company is required to file Tax returns, whether the company makes profit or loss.