In a different case of retrospective move, the Income Tax Department has decided to initiate action against the sellers of immovable property right from 2006 if they fail to pay capital gains tax or file their returns showing the correct capital gains income before the end of this month.
The department on Thursday said it had data regarding 60,000 immovable property transactions involving 1,77,630 sellers with details including name and addresses of the seller as well as the purchaser along with the date of registration, sale consideration among others.
"It was noticed that many of the sellers have not filed returns of income in spite of having taxable capital gains on these transactions in immovable (ie land, building etc) properties. In respect of returns filed, it is further noticed by the department that that the assessees have not adopted the value assessed by the sub-registrar for the purpose of stamp duty levy as the sale value as required under Section 50 C of Income Tax Act," P Madhu, spokesperson for the Chief Commissioner of Income Tax, Hyderabad said in a statement.
Such assessees now have to revise their returns immediately and pay the taxes. According to the provisions of the IT Act, penalty equivalent to tax may go up to three times, particularly if the capital gains on the land transactions are not correctly disclosed. Non-payment of tax on such income would also invite prosecution under the provision of the Act, he said
The department had collected the data from the state registration and stamps department, and verified with returns data available with it. Tax is payable on sale of agricultural lands also if they are situated within the specified distance from the municipal limits, according to the statement.
