VUDA Harita Allottees’ Association has brought to the notice of VUDA that the interest on the money deposited towards the cost of flats in the township at Madhurawada has landed them into trouble by attracting provisions of the income tax. Association president G.A.N. Bhukta said VUDA should have given compensation for the delay without increasing the cost from Rs.1719 per sft to Rs.2170. The compensation was termed interest by VUDA, Mr. Bhukta said, and Rs.45 crore was collected as additional amount towards the cost of flats.
With tax deduction at source levied on the interest, buyers have either been brought into the tax net or existing tax-payers pushed into higher slabs, Mr. Bhukta said. He blamed the administrative lapses and accounting mistakes of VUDA for their predicament.