DLF prepares for Rs400-crore tax surcharge

09 May 2009

DLF Ltd, India's largest real estate company by revenue, on Thursday said it may incur a tax liability of about Rs300 crore to Rs400 crore.

This comes after the Income Tax department reassessed the company's books, which may result in Rs1,200 crore of additional income showing up for the 2005-06 financial year, the company said in a statement to the Bombay Stock Exchange.

The 2005-06 financial year was the first in which real estate companies were required to use a different method for calculating revenue and profit.

However, DLF feels that it may not have to pay the extra amount.

''The company has got an expert opinion on the enhanced taxable income and is confident that this addition will not be sustained by the appellate authorities,'' DLF said.

''In an unlikely event, if the said order is not reversed by the appellate authorities then it can result in a contingent liability of approximately Rs300 to Rs400 crore,'' it said