The profit obtained from the sale of properties such as houses and land is referred to as capital gains. For instance, if an individual purchased a house for Rs. 30 lakhs five years ago and is now selling it for Rs. 80 lakhs, they would realize a profit of Rs. 50 lakhs. This capital gain is subject to taxation. A resident of Hyderabad, the capital of Telangana, purchased a house at a lower price in the year 2002. He has now sold this property for Rs. 1.4 crores. He is required to pay capital gains tax on this property sale. However, he, unwilling to pay the tax, submitted false information in his income tax return and provided counterfeit documents. Specifically, he claimed to have spent Rs. 68.7 lakhs on home improvements while stating that he had only received Rs. 24,774 as capital gains. He also submitted documents related to the expenses incurred for the home improvement. Prior to this, AI indicated that it would not have been possible to prepare the document in Calibri font in the year 2002.Based on this evidence, income tax department officials conducted an investigation with a resident of Hyderabad. He was unable to submit the original documents. Following this, he filed a new income tax return and paid the capital gains tax.
