If you are planning to buy property you have got make sure that you can prove the fact that you can afford what you buy. The Income Tax department is planning to scrutinise the tax returns of people who have purchased property worth more than five times their annual income.

This means that if you have purchased property worth Rs 1 crore, then your annual income should be at least Rs 20 lakh. Sale of property worth over Rs 30 lakh too will come under the I-T Department scanner. According to the government, the real estate boom is attracting a lot of black money.

"Information that department contains has to be available at one place. That information will then be compared with the return forms. This is the basic concept," says Member, CBDT, Dinesh Verma. Industry insiders say that these tough steps are needed to regulate the industry. They also say that the new rules will not hamper the sector's growth. "The phobia or the fear psychosis will definitely play a role," says CEO, Omaxe, Arvind Parikh. But all this not just aimed at the buyer. The I-T department is also training its guns on builders, especially if they have a turnover of over Rs 5 crore.

Source: ibnlive.com
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