If 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 deal 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 ten lakh rupees per annum and you have bought a house for more than eighty lakh rupees, 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 ten lakh rupees 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 more than thirty lakh rupees 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 twenty-five 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. 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 forty lakh rupees and those who report profit of less than 30% of the gross receipt, can also face scrutiny.
3 Comments
Booming markets invariably bring with it unsavory people, who try to make some quick money through dubious methods. This is more or less the state of India’s property market at this point of time. There are developers who sell the same piece of land to number of customers and there are those who sell land without clear titles or mandatory permissions from the authorities.
There are many fly-by-night operators and others in the unorganized sector who indulges in such fraud. So what should a buyer do? I would suggest buyers to investigate the background of any developer thoroughly. Believe me, if you are not careful, your life’s savings could be at risk.For more view- realtydigest.blogspot.com
Yes it is must because lot of prices of building and apartment which have to be calculated to be under tax which is important according to the government.
There is huge black money involved in real estate market.
Lots of person earn money in real estate deals as brokers agents. so its better to have a close look on this industry.