IT dept to track property deals in Mumbai

IT dept to track property deals in Mumbai
20/07/2017 , by , in News/Views

The Income Tax (IT) department has reportedly sent word to all sub-registrars and tehsildars to disclose the details of property deals in Mumbai worth Rs 1 crore or more in the past 10 years. This will help the authorities catch hold of the unaccounted funds under such properties.

Benami properties are those in which the real beneficiary is not the one in whose name a property is purchased and the sale or purchase is done with the intention of avoiding property tax. According to the Act, if the property is confirmed to be benami, it can be seized by the authorities.

Experts told there would be at least 5,00,000 property agreements in Mumbai summing up to a crore or more in the past decade.

Dhruva Advisors LLP CEO Dinesh Kanabar said real estate is one of the “primary destinations for unaccounted money”.

Under Section 21(1) of the Prohibition of Benami Property Transactions Act (1988), the IT department has the right to seek information on properties registered between April 2007 and June 2017. Last year, the Central Board of Direct Taxes (CBDT) brought in this change on October 25.

The department has asked the sub-registrars to provide details of all registrations, which will ensure that mandatory property transfers are covered.

Development agreements, tenancy transfers, certificates of sales, flat/office/commercial premise sales, amalgamations-demergers, exchange of properties, transfer of lease, gifts, lease agreements (with deposit over Rs 1 crore), mortgages, power of attorneys, surrender/partitions of properties/rights, release deeds, transfer of lease, and works contracts – are the details required by the IT department.

Along with the list of the property transfers, the sub-registrars and the tehsildars are asked for their names, address, agreements’ value with its corresponding market value, property details and PAN numbers of the sellers and buyers.

The information disclosed to the IT department will be used with analytics to identify suspected benami holders and will be sent notices, sources told.

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