In a move to curb unlawful activity in the real estate sector, the finance ministry has asked registration departments in all states to share with it property transactions with value of Rs 50 lakh and above.
States have been asked to submit with the finance ministry immovable property reports every quarter by the 15th of the subsequent month. As it is, the Income-Tax Department collects annual data on all transactions above Rs 30 lakh.
Recall here that on property transactions valued Rs 50 lakh and above, the seller is liable to pay 1% of the value as tax deducted at source (TDS). The responsibility to deduct the TDS and submit it with the tax authority, however, falls on the buyer.
Also, land is state subject in India where states are responsible for levying taxes like stamp duty and registration charges on property transactions, the single most robust stream of income generations for them. All states levy and collect these taxes through the Inspector General of Registrations.
Following the finance ministry directive (letters in this regard have been sent to states), sub-registrar offices across India will compile details of property transactions valued at Rs 50 lakh or more in every quarter. They will then submit the immovable property report to the Financial Intelligence Unit, India (FIU-Ind). States will file these reports virtually on Fingate 2.0 official portal.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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