Simplified Guide to Tax Compliance for Property Transactions

Understanding Compliance Queries: Grasp the significance of addressing compliance queries related to immovable property purchases to avoid penalties. Valuation Discrepancies: Learn about income implications if the property is received without consideration or with disclosed consideration lower by more than Rs. 50,000.

Pre-Sale Agreements: Understand the application of sections 50C and 56(2) in cases where sale execution hasn't occurred but an agreement of sale is prepared. Encountering Verification Challenges: Recognize reasons for receiving verification notifications, including non-filing of ITRs and abnormal transactions.

Total Investment (A1): Declare the aggregate amount paid for property purchase, including co-ownership details and associated expenses. Receipts from Identifiable and Unidentifiable Persons: Detail amounts received from individuals with or without a PAN, specifying transaction types and modes.

Miscellaneous Expenditures (A7): Declare any miscellaneous amounts not fitting into other categories, ensuring suitable remarks are provided. Unexplained Amount (A8): Calculate and explain any unexplained differences in the declared investment amount.