Property Buyers Beware! No Tactics before Income Tax Deptt.

July 23, 2007	(1 votes, average: 1 out of 5)  Loading ...
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New tax rules in Indian property market may have persuaded most property buyers to work out the ways to escape paying the tax.  However, the Income Tax Department will now keep a close scrutiny on those who are trying to evade the tax net despite high levels of income.

Under the scanner, especially will be commodity brokers and those buying property at the cost exceeding their annual income.

The latest rules and regulations, discussed with chief commissioners of I-T department, have been designed taking property deals into special consideration. All deals worth more than five times a buyer’s gross income face scrutiny. Individuals who will deliberately show the losses or try to escape paying the capital gains will also be found guilty.

The gross income will constitute the gross total income which could be earned as a salary and perk, agricultural income, and income claimed to be not liable to income tax.

Since, there has been a sharp increase in property prices over the period they were acquired; a few individuals may have to sell commercial or residential property at a loss. Or it can be their strategic move to get rid off paying capital gains tax.

News Published Under:   Real Estate India |

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