Income tax department begins examining property transactions made after demonetisation

The decision follows a note from the CBDT chairman addressed to all IT offices asking them to pull up their socks since tax collection was still trending below budget expectations.

Published: 22nd January 2019 08:59 AM  |   Last Updated: 22nd January 2019 08:59 AM   |  A+A-

By Express News Service

Struggling to meet its tax collection targets before the deadline for the current fiscal year runs out, the Income Tax department is zeroing in on all property transactions with above Rs 20,000 in cash made post demonetisation was announced in November 2016. “Property deals are an easy way to track black money and tax evasion.

The department is looking at the property deals done after 2016 in top five property markets where cash component of more than Rs 20,000 is involved,” a senior official at the IT department told this paper. The top five markets under the tax authorities’ lens are Mumbai, Delhi NCR, Bengaluru, Chennai and Hyderabad.

As per the law implemented by the Central Board of Direct Taxes (CBDT) since June 2015, any transaction in real estate, including involving agricultural land, shall be made through account payee cheques, real-time gross settlement (RTGS) or electronic funds transfer if the amount is Rs 20,000 or above.

If cash transactions above the limit are made, then a penalty under Section 271 D of the Income Tax Act will be imposed on the seller and buyer.

The decision follows a note from the CBDT chairman addressed to all IT offices asking them to pull up their socks since tax collection was still trending below budget expectations.However, many of those who have received notices from the CBDT are already terming the move mass harassment by the IT department.But the department is playing down these allegations, noting that in a country of 130 crore persons, where around 6 crore returns are filed every year, only 1,400 prosecutions have been filed so far for various offences under the Income Tax Act during this financial year.

“This, by any stretch of imagination, cannot be termed as mass harassment by the income tax department. Therefore, to say that prosecution notices enmasse have been sent to taxpayers for minor defaults is completely incorrect and misleading,” the CBDT said in a statement issued on Monday.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp