Are you filing ITR for the income earned from another property? If not, you might land in problem
Sep 12, 2017 Legal Guidance
The government has seized the Benami property worth Rs 800 crore till mid August 2017. The IT department of the country is now planning to scrutiny those who are holding the property papers and not paying the IT returns for the same. Prior to budget 2017, only 24 lakh tax payers have declared income over Rs 10 lakh per annum while the current population of the country is 125 crore.
Let’s take a look at the developments in this regard:
1. Certain changes were made in the Income Tax reforms (ITR) forms this year. A single page ITR-1 form called Sahaj was introduced for those who are earning from salary or pension, income from the other sources and a single house.
2. The ITR-2 form is for those who are having income from the salary, more than one property, and capital gains.
3. Some states like Telangana and Andhra Pradesh are keeping the tabs on the property record through the digital platform called the block chain technology. Money trails and transactions can be recorded permanently through these.
4. According to the media reports, the IT department questioned some of those who have not paid their rental income which they brought under the RBI’s Liberalised Remittance Scheme (LRS) which allows them to invest in the property abroad worth $2,50,000.
5. Adhaar is now compulsory for filing your IT returns. The government may also make UIDAI based authentication compulsory for the real estate deals. Around 81 lakh Adaar cards were deactivated due to duplicity, data discrepancies etc.
6. The Municipal Commissioner of Lucknow has said that all the properties under the jurisdiction will be linked to Adhaar card and the database will be integrated with another department as well. If this works, then it will be extended to the entire state as well.
7. The IT department has started the operation clean money which will be used to check the accounts that have made large deposits made between Nov 9, 2016, and 30 Dec 2016. Data analytics will be used to compare the demonetisation data with information in ITD database. In the first round, 18 lakh individuals have been identified for the cash transaction for more than the tax they pay. As a result of the same, there was 25 percent more tax filing this year. The verification of the individual will be declined if the person is able to declare the right source of income or if the income was deposited in PMAY.
8. In the second phase of operation clean money, around 5,50,000 people have been identified and will now be questioned for the same.
Let’s take a look at the developments in this regard:
1. Certain changes were made in the Income Tax reforms (ITR) forms this year. A single page ITR-1 form called Sahaj was introduced for those who are earning from salary or pension, income from the other sources and a single house.
2. The ITR-2 form is for those who are having income from the salary, more than one property, and capital gains.
3. Some states like Telangana and Andhra Pradesh are keeping the tabs on the property record through the digital platform called the block chain technology. Money trails and transactions can be recorded permanently through these.
4. According to the media reports, the IT department questioned some of those who have not paid their rental income which they brought under the RBI’s Liberalised Remittance Scheme (LRS) which allows them to invest in the property abroad worth $2,50,000.
5. Adhaar is now compulsory for filing your IT returns. The government may also make UIDAI based authentication compulsory for the real estate deals. Around 81 lakh Adaar cards were deactivated due to duplicity, data discrepancies etc.
6. The Municipal Commissioner of Lucknow has said that all the properties under the jurisdiction will be linked to Adhaar card and the database will be integrated with another department as well. If this works, then it will be extended to the entire state as well.
7. The IT department has started the operation clean money which will be used to check the accounts that have made large deposits made between Nov 9, 2016, and 30 Dec 2016. Data analytics will be used to compare the demonetisation data with information in ITD database. In the first round, 18 lakh individuals have been identified for the cash transaction for more than the tax they pay. As a result of the same, there was 25 percent more tax filing this year. The verification of the individual will be declined if the person is able to declare the right source of income or if the income was deposited in PMAY.
8. In the second phase of operation clean money, around 5,50,000 people have been identified and will now be questioned for the same.
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