Surat I-T department’s tax revenue from the realty sector drops 60%

Surat (Gujarat): Surat’s Income Tax Department has seen a nearly 60% drop in tax revenue from the real estate sector in the last year. Surprisingly, tax revenue from bakery products and the medical sector has increased by 377% and 147%, respectively.

According to sources, the Income Tax department has created specialised software to track the country’s tax revenue by sector. Surat’s I-T officials are keeping a close eye on three industries: real estate, diamonds, and textiles.

According to information gathered from the I-T department, there are approximately 2,000 assesses in the Surat Income Tax circle, which extends from Surat to parts of the Vadodara region. However, realtors paid less than Rs 100 crore in taxes last year, which is nearly 60% less than the previous year.

Surat’s real estate sector is estimated to generate Rs 6,000 crore in revenue per year. However, a 1% tax on income from the real estate sector generates Rs 60 crore in tax revenue for the I-T department.

According to experts, the real estate sector has underperformed post-Covid. Because of the recession in the textile and diamond sectors, the majority of residential and commercial projects in and around Surat have yet to find buyers and inventors.

Meanwhile, tax revenue from the manufacturing sector has increased by 187.5% in the I-T department. About ten tax assesses are registered with the I-T department, and they paid Rs 8 crore in taxes in 2020-21, which has now increased to Rs 15 crore in 2021-22.