NAGPUR: The income tax department is receiving a growing number of tax evasion petitions (TEPs) involving undisclosed property transactions, with officials pointing to underreporting by land registrar offices as a possible factor enabling defaulters to hide deals.
TEPs — formal complaints from the public alleging tax evasion — have increasingly highlighted the non-disclosure of major property sales in tax returns. Sources said about 20% of petitions pertain to such cases.
Investigations confirmed several allegations, leading to the levy of capital gains tax. In some cases, however, transactions involved only cash payments. Land registrars, under the state government, are required to report every real estate deal above Rs30 lakh (on which stamp duty is paid) to the I-T department under the statement of financial transactions (STF) system.
A significant mismatch has been detected between deals registered at Hingna sub-registrar’s office and those reported under STF, prompting an inquiry. Sources said the gaps suggest a need to strengthen the STF mechanism.
If reported in STF data, deals reflect in the I-T system, making non-disclosure easier to detect. However, unreported transactions escape scrutiny. Even when payments are made via cheque, sellers can avoid paying capital gains tax by omitting the deal from their returns, said officials. Capital gains tax applies to profits from the sale of property and other assets.
