Buying Land? Here’s Why You Might Get a Tax Notice!
Land purchases above Rs 30 lakh are mandatorily reported to the Income Tax Department by the Registrar’s office under Section 285BA (Statement of Financial Transactions).
No income tax on buying land, but the source of money better match your declared income!
The tax department is watching, especially for high-value properties (₹30 lakh+), so here’s what you need to know:
Why Notices Show Up:
– Your income doesn’t justify the purchase
– ITR not filed for the year of purchase/sale
– Buyer didn’t deduct 1% TDS when required (Sec 194-IA)
– Purchase value declared below stamp duty value
– Additional info/documents requested by the department
Taxes You Need to Pay:
– Stamp duty: 5-8% (varies by state)
– Registration: ~1%
– TDS @1%: Buyer must deduct + deposit via Form 26QB within 30 days and issue Form 16B
What to Do If You Get a Notice:
– Cross-check details on the portal, 26AS, AIS, bank statements, and property documents
– Keep sale deed, payment receipts, seller PAN/KYC, valuation reports handy
– Respond within the deadline; seek CA assistance if needed 📞
Team- Intellex Strategic Consulting Private Limited
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