PETROL PUMP STATIONS – DEPOSITED MONEY (OLD CURRENCY) – ACCOUNTS ARE BEING CHECKED BY THE INCOME TAX AUTHORITIES. 16.70 Bank accounts under investigation.


The Income Tax Department is scrutinising the Books of Accounts and the bill books maintained by the Petrol Pump Stations across India, which had deposited more old currency during the demonitisation.

The Income Tax Department has also found out abnormal discrepancy in 16,70,000 accounts with huge deposits and are under scrutiny.

It is ACHCHE DIN FOR THE HONEST TAX PAYER.  

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Income Tax officials raid the homes of jewelers in 8 places in Chennai, recover Rs.90 crores in cash and Rs.29 crores jewellery


The department has been conducting regular raids since notes ban on Nov 8 Till December 6, cash and jewelry worth Rs. 120 crore (90+29=119)had been seized. The officials of the Income Tax department raided the homes of jewellers and sand miners in Chennai and recovered Rs. 90 crore in cash and 100 kg gold today. Raids have been conducted at eight places in the city, sources said.

Of the seized cash, Rs. 70 crore were in new notes, Rs. 20 crore in the banned old notes of Rs. 500 and Rs. 1,000, sources said.
Till December 6, cash and jewellery worth Rs. 130 crore had been seized and Rs. 2,000 crore of undisclosed wealth admitted by taxpayers, the department said.
The value of the gold seized today is Rs. 29 crore.

Further the investigating agencies, is stated have been examining the amounts deposited in the Bank Accounts worth Rs.11.55 lakh crores.

The amounts deposited without proper accounts and in benami names will attract the penal provisions of Benami Property Act.

 

REGISTRATION VALUE OR THE GUIDANCE VALUE OF THE PROPERTIES REGISTERED – TAX EVASION – PENALTIES – TAX EVADERS GOT RED HANDED – RBI -INCOME TAX DEPARTMENT – STAMPS AND REGISTRATION DEPARTMENT – STAMP DUTY EVASION – PENALTY – 10 TIMES THE TAXES EVADED


In a bid to reduce or evade the stamp duty at the time of registration, the buyers and the sellers of the properties, have not SHOWN  the real sale price or consideration in the registered sale deed, but 90% of the buyers have borrowed money or availed institutional finance under HOME LOAN scheme, have falsified or deliberately undervalued the properties during the REGISTRATION PROCESS.

The Reserve Bank of India, being the central bank, governing all the banks in India, has all the details about the SALE AGREEMENT,(based on the sale agreement, the housing loans are sanctioned by the banks) and the SALE DEED.  It is very easy to detect the discrepancy or the undervaluation.

STAMP DUTY evasion invites 10 times the penalty of the STAMP DUTY EVADED, while, misrepresenting or concealing the actual consideration will invite CHARGES under several ACTS.

The Income Tax department has detected many such illegal transactions and are investigating too many such cases across the country and it is reported that over 30% of such tax evasion, misrepresentation and tax evasion are all in properties across BANGALORE alone.

Await the Tax Sleuths at your door steps soon for those who have different values in the SALE AGREEMENT and registered the property for LESSER VALUE in the SALE DEED.

REGISTRATION OF PROPERTIES AT A VALUE LESSER THAN THE ACTUAL SALE VALUE OF THE PROPERTY TO EVADE STAMP DUTY AND INCOME TAX


A News Report of real estate transaction in Bangalore Mirror on 13-07-2016

Woman entered into a deal to sell her property, but faced trouble when buyer refused to pay the ‘remainder’ 

The High Court of Karnataka has allowed a 75-year-old property owner to initiate a cheating case against the buyers of her property who allegedly refused to pay her the amount that was negotiated for. The property was registered for a lesser amount than what was mutually agreed, as is the norm with most property registrations. But in this case, the purchaser allegedly refused to pay the ‘remaining’ amount while paying her only the amount mentioned in the sale deed.

An US national came to Bengaluru to sell her property in 2013 and entered into an agreement to sell with  for a consideration of Rs 2 crore. However, this transaction did not fructify. Later, an agent got her a deal to sell the property to one  XXXXXXXXXXXXfor Rs 6,58,20,000. However, the sale deed for registration was prepared only for Rs 4,32,20,000.

The Landlady alleges that she was not paid the difference amount and hence she refused to give up possession of her property.

She complained to the  police that she was being forced to give up possession of the property without the balance amount being paid to her. The police did not register an FIR but gave her an ‘endorsement’ that it was a civil dispute and hence she should approach the court.

Thereupon, she approached a civil court, which refused to give an injunction against the property purchasers and she claimed that she was forcibly thrown out of the property and then approached the HC for justice.

The HC noted that there was “some semblance of criminal intention on their part.” of the buyers,  It also castigated the police for not filing an FIR. “This court is unable to understand as to how the  police could refuse to register the complaint and issue such an endorsement.” The court said the case was unnecessarily being pursued in the civil court.

Relegating the case to the magistrate court  and directing the seller “to file appropriate complaint and seek appropriate direction to the jurisdictional police for investigation and registration of the complaint for the offences alleged against the defendants”, the court also allowed her to proceed against the purchasers to recover the amount due to her.

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REMARKS-

UNDERVALUING THE PROPERTY – STAMP DUTY EVASION – INCOME TAX IRREGULARITY – CAPITAL GAINS – PENAL PROCEEDINGS – REPATRIATION OF FUNDS ABROAD

Income Tax Department might step in along with the Department of Stamps and Registration to conduct an enquiry into the TAX – for the difference amount.  Amount negotiated and the Amount shown in the Sale Deed.  The difference of stamp duty + 10 times the penalty and the Income Tax + Capital Gains + Penal proceedings from the IT Investigation Wing.

If the property is bought for X price and registered it for Y price, to evade stamp duty and Income tax, both the departments will have conduct enquiry and the amount `Y` has to be assessed to tax.

The liability towards the stamp duty is the DUTY NOT PAID OR EVADED on the OTHER amount Plus 10 times the penalty and the income tax (TDS) + recovery proceedings by the IT department.


There are many financial institutions provide home loans and some of them by-pass the RBI directives and assist the buyer and seller to EVADE stamp duty.  This is not very difficult to investigate.  The actual sale agreement is for Rs.1,00,000/- and the loan sanctioned is also on the basis of the sale agreement and 75% or 80% of the value shown in the Sale Agreement.

But, the SALE DEED registered is for Rs.50,000/- by undervaluing the property and EVADE STAMP DUTY.

The penal proceedings:

STAMP DUTY HAS TO BE PAID FOR THE DIFFERENCE AMOUNT OR TAX EVADED AMOUNT OF Rs.50,000/- at the prevailing applicable rates and 10 times the penalty of the TAX EVADED AMOUNT.

If this discrepancy or illegality is brought to the notice of the RBI, the RBI might be compelled to initiate appropriate proceedings against the bank or financial institution and direct the BANK to proceed with the immediate recovery of the amount LENT to the borrower.

 

PROPERTY GUIDANCE VALUE REVISED OR INCREASED IN BANGALORE URBAN AND RURAL DISTRICT WITH 15 DAYS NOTICE TO FILE OBJECTIONS


The State Government has increased the Guidance Value or the Circle Rates or the Market Price of the property in Bangalore Urban, Bangalore Rural District and Ramnagar District with 15 days notice to submit the objections, if any, with supporting documents or evidence.

In some areas, the increase is very steep and on an average the increase is around 10% only.  The consequent effect will be strain the buyers.  With this increase, the Income Tax, VAT, Service TAx and Capital Gains tax will also goes up, indirectly.

The Income Tax department is also scrutinising many transactions, wherein the buyers in collusion with the sellers/agents/builders have underquoted the property consideration below the guidance value.  The department may initiate penal action on such buyers and sellers soon. The Guidance Value is treated as the Fair Market Value.  The property value or consideration must not be less than the guidance value as per the Finance Act.

INCOME TAX RETURN FILING- DATE EXTENDED TO 07-09-2015


The Finance Ministry has notified that the last day for filing income tax returns has been extended to 07-09-2015.

BUYING A PROPERTY WITH CASH – TRANSACTIONS ABOVE RS.20,000/- MUST BE ONLY THROUGH CHEQUES AND DEMAND DRAFTS.


THE GOVERNMENT HAS FINALLY COME OUT WITH A NOTIFICATION RESTRICTING THE TRANSACTIONS IN THE PROPERTY IN TERMS OF CASH BY PERMITTING IT TO RS.20,000/-. ANY AMOUNT PAYABLE OR TO BE PAID MUST BE ONLY THROUGH AN ACCOUNT PAYEE CHEQUE/DEMAND DRAFT/PAY ORDER/BANK TRANSFER/RTGS.

THE TRANSACTION IN CASH INVOLVES HIGH RISK AND THE BUYER WILL BE AT THE MERCY AND  in THE CLUTCHES OF THE SELLER/AGENT/BROKER AND THERE IS ALWAYS A CHANCE FOR THE INCOME TAX SCRUTINY.

IT IS ADVISED TO TRANSACT ONLY THROUGH BANK TRANSFER/ACCOUNT TRANSFER/RTGS/DEMAND DRAFT AND CHEQUES TO AVOID FRAUD AND BLACKMAIL BY THE SELLER AND HIS AGENTS.