NAGPUR: The income tax department has identified a distinct pattern of underreported transactions by the property sub-registrar offices (SRO) in the area during its ongoing investigation. It has been specifically observed that transactions involving a select group of builders in the city were not completely reported in the Statement of Financial Transactions (SFT). Sources indicate this trend has been recurring.
The SFT is designed to ensure that every SRO reports property deeds registered for amounts of Rs30 lakh and above to the Income Tax department. This allows them to cross-reference these with the tax returns filed by buyers and sellers. As builders often register transactions in batches, there has been a consistent pattern observed among certain realtors, where portions of registrations were routinely omitted in their SFT reports. For example, over 50 land purchases by one builder went unreported, while other transactions by the same builders were included, according to sources.
Recently, the Income Tax department examined the SRO in Akola and discovered unreported transactions amounting to Rs250 crore. The cumulative value of unreported deals has now surpassed Rs5,700 crore, implicating approximately 5,500 taxpayers. The average transaction volume per individual exceeds Rs1 crore, although larger deals exceeding Rs50 crore have also been noted.
The plan moving forward is to thoroughly analyze all data to identify potential tax evasion, such as the non-payment of capital gains by sellers or dubious funding sources by buyers, utilizing a system-driven approach. Only specific cases will undergo further examination. Similar initiatives are commencing in other states, inspired by the actions taken in Nagpur, sources reveal.
Meanwhile, property registrar officers have initiated an internal review to reconcile their records. This process is ongoing, ensuring all cases not included in the SFT are forwarded to the income tax department. All documents filed under various SROs are currently subject to scrutiny, a source disclosed.
