I-T Dept: Jaya Properties To Be Auctioned If Tax Arrears Not Paid Up

Chennai: The income-tax department has informed the Madras high court that it will take action to auction the properties of former Chief Minister J. Jayalalithaa, including her residence Veda Nilayam, in Poes Garden, if her niece J. Deepa and nephew Deepak Jayakumar did not pay the tax amounting to Rs. 13.69 crore.

Jayalalithaa’s heir J. Deepa had challenged the I-T notice demanding the payment of tax arrears. When the case came up before Justice C. Saravanan a few days ago, I-T department lawyer A.P. Srinivas said Veda Nilayam was attached even during the lifetime of Jayalalithaa.

The lawyer said the former Chief Minister should pay arrears of income-tax for different assessment years from 1991-92 to 2006-2007 besides wealth tax for the assessment years from 1992-93 to 2015-16. After Jayalalithaa’s death on December 5, 2016, the high court had declared Deepa and Deepak as her legal heirs on May 27, 2020. The I-T department had sent two notices to them, demanding arrears of payment on July 13 and August 4 last year.

While Deepa challenged the communication in the Madras high court, Deepak had sought time to pay his share of Rs. 6.75 crore of the tax arrears according to the share of property to him. The I-T department accepted his request and allowed him to pay Rs. 6.75 crore in six equated monthly instalments.

However, Deepak paid Rs. 1.12 crore and Rs. 62.5 lakh on his own PAN number, instead of Jayalalithaa’s PAN number. If the tax arrears were not paid, the department will auction the property as per procedure under the Income-Tax Act, the I-T lawyer said.