Property Deals under the Scanner

Property buyers are under the Tax Department’s scanner, as real estate transactions peaked in the current financial year. The income tax authorities are zeroing down on investors who have invested in property disproportionate to their income.

A close eye is being kept on commodity brokers as well, and tax evaders
from the agricultural sector.

The Chief Commissioners of Income Tax took
up the issue of property transactions in their meeting last week, especially
those that are five times the gross income of the buyer, and those circumventing
payment of capital gains tax by showing losses.

In effect, gross income will consider gross total income through salary
and perquisites, agricultural income, and the income that has been shelved
as exempt from tax.

A salaried individual drawing a gross income of Rs.25
lakh would be under scrutiny if his asset purchase exceeded Rs.1.25 crore.

Similarly, property sellers are also being watched for evasion of capital
gains, as real estate prices in India have multiplied several-fold over
the last few years.