I-T dept to scan realty deals for evasion
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N.Sukumar
Jun 30, 2008, 2:41:40 AM6/30/08
to Kences1
NEW DELHI: Have you bought or sold a house or a plot for more than Rs
30 lakh? Then expect a knock from tax hounds. Real estate sector is
high on the radar of the income-tax department, which is going to keep
a close watch on buyers or sellers of property.
Realty deals whose value is more than eight times the gross income of
the buyer could come under the scanner of the I-T department, going by
the latest scrutiny norms circulated to officials. So, if your gross
income is Rs 10 lakh per annum and you have bought a house for more
than Rs 80 lakh, you could get a call from the department.
Gross income, for this purpose, shall be total income plus exempted
income minus the total tax paid. This norm is being adopted to ensure
that there is no evasion and people who enter into such transactions
pay taxes honestly.
Cash deposit of Rs 10 lakh in your savings account could also bring
you on the scrutiny radar. Individual assesses now have to report
transactions which get captured in Annual Information Return (AIRs).
Sale or purchase of house above Rs 30 lakh is reported, under AIR, by
registrars to the department.
Scrutiny on these counts would be generated though Computer Assisted
Scrutiny System (CASS) and not through manual intervention.
According to the criterion that were discussed at the recent annual
conference of the chief commissioners and directors general of income-
tax, capital gains of more than Rs 25 lakh could also attract scrutiny
by the department in the current financial year.
Similarly, loss from house property of more than Rs 2.5 lakh would
also invite the I-T department’s scanner, sources told ET. The real
estate sector, which is known to attract large quantum of black money,
continues to draw the attention of tax department.
Real estate agents and builders having a turnover of more than Rs 5
crore could attract scrutiny. Professionals like doctors, architects
whose gross receipts exceed Rs 40 lakh and those who report profit of
less than 30% of the gross receipt, can also face scrutiny.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
30 lakh? Then expect a knock from tax hounds. Real estate sector is
high on the radar of the income-tax department, which is going to keep
a close watch on buyers or sellers of property.
Realty deals whose value is more than eight times the gross income of
the buyer could come under the scanner of the I-T department, going by
the latest scrutiny norms circulated to officials. So, if your gross
income is Rs 10 lakh per annum and you have bought a house for more
than Rs 80 lakh, you could get a call from the department.
Gross income, for this purpose, shall be total income plus exempted
income minus the total tax paid. This norm is being adopted to ensure
that there is no evasion and people who enter into such transactions
pay taxes honestly.
Cash deposit of Rs 10 lakh in your savings account could also bring
you on the scrutiny radar. Individual assesses now have to report
transactions which get captured in Annual Information Return (AIRs).
Sale or purchase of house above Rs 30 lakh is reported, under AIR, by
registrars to the department.
Scrutiny on these counts would be generated though Computer Assisted
Scrutiny System (CASS) and not through manual intervention.
According to the criterion that were discussed at the recent annual
conference of the chief commissioners and directors general of income-
tax, capital gains of more than Rs 25 lakh could also attract scrutiny
by the department in the current financial year.
Similarly, loss from house property of more than Rs 2.5 lakh would
also invite the I-T department’s scanner, sources told ET. The real
estate sector, which is known to attract large quantum of black money,
continues to draw the attention of tax department.
Real estate agents and builders having a turnover of more than Rs 5
crore could attract scrutiny. Professionals like doctors, architects
whose gross receipts exceed Rs 40 lakh and those who report profit of
less than 30% of the gross receipt, can also face scrutiny.
N.Sukumar
Research Analyst
www.kences1.blogspot.com
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