Tag: income tax department

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Maharashtra I-T to penalize sub-registrars for unreported deals

NAGPUR: The income tax department is set to impose significant penalties on property sub-registrar offices (SRO) for failing to accurately report real estate transactions in their financial statements. Investigations at various SROs revealed that transactions totaling approximately Rs13,000 crore were not disclosed in the required format. Registrations of properties valued at Rs30 lakh and above must be reported to the income tax department under the Statement of Financial Transactions (SFT). This marks a rare occasion where a government department penalizes another. Last year, SROs received a penalty notice, but it was for a relatively minor sum. This time, penalties could…

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I-T Flags Unreported Cash Deals in Bihar, Uttar Pradesh

NEW DELHI: The income tax department is scrutinizing cash transactions exceeding Rs 2 lakh in property deals, especially in Bihar and Uttar Pradesh, particularly in areas adjacent to Nepal. Numerous violations have been identified, and sub-registrars have failed to provide the necessary data. This nationwide initiative, following a Supreme Court directive from April, led tax officials to discover instances where entire transactions were conducted in cash. Tax authorities are baffled by the inaccurate reporting from sub-registrars in Bihar and UP. The department has escalated this issue to senior officials in both states, urging them to instruct sub-registrars to share information…

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Fake PANs Help Real Estate Deals Skirt Taxes

MUMBAI: There are concerns that thousands of property transactions nationwide may have escaped the notice of tax authorities. Intentional reporting omissions, along with fictitious or incorrect Permanent Account Numbers (PANs) associated with buyers and sellers in property documents, have allowed many deals to evade scrutiny from the Income Tax (I-T) department. Officials from the investigation wing of the tax office are currently reviewing records from property registrars for verification. Registrars are mandated to report transactions involving properties valued at ₹30 lakh or more. In some instances, parties, in collusion with certain registrar officials, have ensured that transactions remain unreported or…

Latest StoriesRegulatory

Tax Dept Investigates ₹28,000 Crore Property Deals in Manesar

GURUGRAM: An I-T department survey has revealed considerable shortcomings in the documentation of property transaction records at Manesar tehsil, raising alarms over possible large-scale tax evasion. Over the last five years, property transactions worth approximately Rs 28,000 crore have been registered at this tehsil. However, it was found that the Permanent Account Number (PAN) of buyers and sellers, which is mandatory for transactions exceeding Rs 30 lakh, was absent from the records. The survey, conducted by a team of ten members over 24 hours, highlighted that the registration software at the tehsil failed to capture vital PAN details, despite regulations…

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Nagpur: I-T Dept Discovers Selective Realty Deal Under-Reporting

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.…

Latest StoriesRera

Haryana RERA Directs Builder to Refund Cash, Alerts I-T Dept.

CHANDIGARH: In an effort to combat black money in the real estate sector, the Real Estate Regulatory Authority (Rera) Haryana has started referring cases involving cash transactions exceeding Rs 2 lakh to the income tax department for further investigation. Recently, the Panchkula bench of Rera Haryana mandated a realtor to reimburse Rs 10 lakh received in cash from a buyer for a flat in Panipat, plus Rs 7.73 lakh in interest at an annual rate of 10.9%. The buyer, Jasvir Singh from Panipat district, lodged a complaint against Real Heights Developers, substantiating his claim with comprehensive financial records and a…

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Income Tax Dept. Spots Reporting Gaps in Property Sales

NAGPUR: The income tax department is seeing an increasing number of tax evasion petitions (TEPs) concerning undisclosed property transactions. Officials say that underreporting by land registrar offices may be contributing to defaulters hiding these deals. TEPs, which are formal complaints from the public about tax evasion, have drawn attention to the failure to disclose significant property sales in tax returns. Reports indicate that around 20% of these petitions relate to such issues. Investigations have substantiated several allegations, resulting in the imposition of capital gains tax. In some instances, transactions were carried out entirely in cash. Land registrars, governed by the…