Archive · 17 Sep 2025
CBDT Adopts Kolkata Model for Capital Gains Assessment
The government wants to make sure people pay the correct taxes when they make money from building projects with others.
The CBDT, the tax policy-making body, is suggesting a system called the Kolkata Model to check if people are reporting their earnings from these projects correctly.
This model uses information from real estate websites and tax returns to look for any discrepancies.
If someone hasn't reported their earnings, they will be asked about it.
CBDT is promoting the Kolkata Model for assessing capital gains on Joint Development Agreements.
The model is designed to identify potential tax violations.
It leverages information from Real Estate Regulatory Authority (RERA) or Housing Industry Regulation Act (HIRA) websites.
The process involves cross-referencing data with tax returns.
The Kolkata Model is suggested for pan-India implementation to monitor capital gains.
- Who
- Central Board of Direct Taxes (CBDT)
- What
- Is urging field formations to use the 'Kolkata Model' to assess capital gains from Joint Development Agreements
- When
- CBDT issued an office memorandum to this effect, as of September 17, 2025
- Where
- The model was implemented in Kolkata.
- Why
- To proactively identify cases of non-compliance with tax regulations.
- Organization
- Central Board of Direct Taxes (CBDT)
- Focus
- Assessing Capital Gains on Joint Development Agreements (JDAs)
- Model Origin
- Kolkata Charge
- Law Reference
- Section 45(5A) of the Income Tax Act
- Objective
- Identify Non-Compliance in Capital Gains Reporting