IT Department Launches Probe into Jaipur Land Transactions Using Satellite Technology
The investigative wing of the Income Tax (IT) department has initiated a comprehensive probe into large-scale agricultural land transactions in and around Jaipur, employing high-resolution satellite mapping to uncover potential tax evasion. The deals under scrutiny are estimated to be worth nearly Rs 7,000 crore, marking a significant enforcement effort in the region.
Summons Issued to 110 Individuals in Tax Evasion Case
So far, the department has issued summons to approximately 110 individuals who allegedly sold land valued at crores of rupees but failed to disclose these transactions in their income tax returns. Senior officials from the investigative wing confirmed that the IT department is collaborating with IIT Delhi to identify agricultural land located within or near Jaipur municipal limits through advanced satellite imagery.
An official from the IT department explained, "The exercise aims to determine whether capital gains tax was applicable on such transactions under the Income Tax Act, 1961, particularly under Section 2(14)(iii), which defines when agricultural land qualifies as a capital asset for taxation purposes." According to tax laws, long-term capital gains tax applies if agricultural land is situated within municipal limits or within a specified distance, typically 6 to 8 km, from municipal boundaries.
Investigation Uncovers Suspected Tax Evasion in Land Deals
In many of the cases under investigation, sellers are suspected of treating the land as exempt agricultural property, thereby neither reporting the transactions nor paying the applicable taxes. The summoned sellers have been directed to provide explanations for their sources of income, furnish details of the land deals in question, and justify their failure to disclose these transactions in their tax returns.
Another department official stated, "After assessment, their capital gains income will be calculated and tax levied accordingly." The IT department is currently verifying land records, sale deeds, and tax filings to ascertain the extent of undisclosed income and recover pending taxes, along with penalties where applicable.
Satellite Imagery Identifies 250 Villages with Non-Compliant Transactions
Using satellite imagery, investigators have pinpointed 250 villages near the Jaipur Municipal Corporation limits where large-scale land transactions occurred with minimal or no tax compliance. The official added, "The total value of such deals over recent years could be around ₹7,000 crore." This revelation underscores the scale of the potential tax evasion in the area.
Broader Statewide Effort to Curb Tax Evasion in Land Transactions
In a broader initiative to combat tax evasion in high-value land transactions, similar satellite-based investigations have been launched in 14 other cities across the state. This statewide effort reflects the IT department's commitment to leveraging technology for enhanced tax compliance and enforcement.
