Income tax department is seriously focusing on the transactions of high value properties dealing. Sale and purchase of immovable properties creates high value transaction. And in a lot of transactions do not relate with PAN number. So income tax department uses third party information for these types of transactions, for tax evasion and create additional tax collection.
Also there is a huge fixed deposit by the agriculturists, which are because of sale of agriculture land to government, and they generally deposit this amount into the banks for fix deposits or to the money vendors, who gives high percentage of rate of interest.
Income tax department is collecting large numbers of third party information instead of collecting the data from annual income tax return. Income tax department believes that this will play a critical role in tax evasion.
The work for income tax department is simple. Department will match the data between income tax return and the third party information data. If there is any mismatch between two, income tax department will create demand for the income tax evasion. PAN number will be mandatory for transactions of immovable property in urban areas. This rule will come into force soon starting in urban area and then in rural areas.
According to the income tax department, this is now easy to match and create records as more as income tax return are now e-filed with which data is easy to store, match and make the work faster.
The ministry of corporate affairs is collecting the data of capital and income of the directors of the companies to evasion the tax evasion from the directors of investment companies. There was a great amount of tax evasion in this field. The department registered 300000 companies online and collects all the data like capital utilized in formation of the company and annual income. This data is also available in corporate of ministry website.
This happens because of electronic filing of the return which gives all the information of the company as well as the PAN holder in fingertips. This give the great information and the department easily eye on the tax evasion
Tags-income tax on immovable property,pan no is required for transaction of immovable property,income tax is watching on transactions of immovable property,