Realtors pay up over Rs 160 cr in tax dues

Real estate developers may not want to slash prices despite the economic slowdown, but they don't want trouble either - which explains why some have coughed up over Rs 160 crore in tax dues.

Some called these payments as advance tax, although others termed it as "peace buying" tactic.

The real estate sector has surrendered more than Rs 160 crore to the government's coffers after tax sleuths conducted search and survey operations to see if anyone had evaded taxes, official sources in the income tax department said.

The profits for businesses are shrinking and the tax department's investigations leave them with no option but remit the money or fight their case. They are choosing the first option, the official said.

A real estate company in the national capital, AMR Infrastructure, recently deposited Rs 26 crore, while another builder with operations in 15 states deposited Rs 35 crore, according to department sources.

"The payments were made in the context of advance taxes and not surrender," AMR infrastructure Managing Director R C Soni said but refused to give the exact amount paid by it.

Leading real estate player Suncity has deposited about Rs 40 crore with the department, while Mahagun Developers deposited Rs 30 crore earlier.

Suncity Projects Director Ashok Bansal said: "We have surrendered Rs 30 crore to buy peace with the department. We do not want hassles."