High value property worth

value property worth Rs 3000-5000 crore comes under I-T radar, notices to be issued shortly

High value properties purchased by 6000 individuals/entities worth around Rs 3000-5000 crore would be now investigated by the I-T department across the country.

The income tax (I-T) department has begun its second phase of "Operation Black Money", across the country. In the second round, the department is focusing more on those tax evaders who have purchased high value properties in last few years, but not shown in their income tax returns.

Last week, the press release issued by the Central Board of Direct Taxes (CBDT) stated that more than 6000 transactions of high value property purchases shall be subjected to detailed investigations.

In an exclusive talk with India Today, Sushil Chandra, Chairman, CBDT confirmed that those persons/companies who had purchased high value properties for "Rs 30 lakh or above and not shown it in their income tax returns will get probed".

Chandra said, "These are the investments made by an individual or entities. Ideally, banks never reveal data of investment above Rs 30 lakhs. Therefore, the department is collecting these data from registrar of property. Registrars have to create a data if any property is getting transacted beyond Rs 30 lakh. This data would automatically come to I-T department. Once it arrives, it would be linked with the pan numbers and departments would get the real status of the pan-holder."

ERADICATING BLACK MONEY

These properties could be a residential flat, bungalow, open plot, commercial complexes and others. On an average, in metro and semi-metro cities, high value properties fall in the range of Rs 30-75 lakhs and above. "It could be more than that. Somebody might have purchased propertyfor Rs 1 crore also," Chandra said.

Going by these numbers and taking an average of Rs 50 lakh per property, high value properties purchased by 6000 individuals/entities would be worth Rs 3000-5000 crore, which would be now investigated by the I-T department across the country.

As per the plan of action, the department would start issuing notices to these names, seeking details of properties, names of the owner and their source of income. The response would get verified with the pan numbers and with their income tax returns, filed in last 3-5 years.

"If the replies and details shared are genuine and satisfactory then there will be no issues, but if it shows variations then the department would go for the next action, i.e. survey/searches," an IT official said.

The whole intention is to eradicate the black money from the system. "It is not sector specific or person specific. Wherever, we find the black money and tax evasion, our officials would start working on it," Chandra hinted.

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Article source:yahoo.com