SEZ LAND ACQUISITIONS COME UNDER I.T SCANNER

Land acquisition by special economic zones (SEZs) has come under tax scanner. The income tax department has upped the ante zero tax deduction at source (TDS) on payments made for purchase of land for these projects. Inspections and surveys by the I.T. department have revealed that in several recent SEZ land transactions, there was no deduction of tax. TDS in such cases has to be deducted
at the rate of 1% for payments exceeding Rs. 15 Lakh.