Database to be formed to suppress property sale
In an exercise that was aimed at checking the black money, economic intelligence agencies have started identifying instances where proceeds from the property sale have been suppressed in a bid in order to defraud the government of revenue from stamp duty.
The government may also form a database of the suppressed sales proceeds in order to help the authorities that have decided on appropriate guidance price for land in an area, which is closer to reality and discourages black money transactions, according to official documents. The guidance value of land is the minimum price set by the state governments below which property cannot be registered.
The matter of sharing such details between Income Tax and Controller of Stamps departments was discussed during the meeting of Economic Intelligence Council (EIC) headed by the Finance Minister. It was reported that in large number of cases, the actual amount for which the property is purchased or sold is much more than the amount at which it is registered.
The further details on what will be done regarding the issue will be stated after a discussion among the authorities.
Source: Financial Chronicle
