Sir get ITR filed regularly to avoid inconvenience from ITD
A friend of mine purchased land worth registration 8 lakh in 2011 and he has never filed an itr ... would his property be treated as benami trasaction..? And if notice received form incometax office and he is not able to explain the source of income.. then would he be liable for fine penality or jailed?
- ITR is required to be filed when the gross total income is more than exemption limit.
- If you are not able to explain source of funds then you are liable to pay tax @30% on such amount alongwith interest.
It is not necessary to file ITR even if you purchase the land if your income is below the limit.
But yes you should be able to explain the source of investment otherwise it could lead to penalty by saying it as unexplained investment, but it's not a big amount which can't be explained so it's ok.
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Thank you
Would it be considered as benami transaction..? Nd what the limit of putting cash in hand?
if it is Registered Property then it is not a benami transaction dear, there is no limit of putting cash in hand if it is earned and saved in legal manner
Definition of Benami Property : A property which is not in name of actual owner.
In your case if he is not able to prove source of income for such property than such amt of income will have to be offered for tax.
It's not necessary that if you have purchased a property you need to file an ITR if you have proper source using which you have purchased the property then it can never be considered as benami property.
Don't worry
Hi
Benami transaction is when one person provided funds for buying property on another person name.
You should have sufficient documents to prove the genuineness of transaction in case of any departmental inquiry,otherwise penalty could be levied.
Hope it helps
Hi
He was required to file ITR if his income in an year exceeded the maximum amount not chargeable to tax.
It cannot be directly declared as a benami property if registration has been done.
If sources of income could not be explained, the tax, interest and penalty burden would be high.
It would be better to plan such things in advance so as to prove such sources of funds utilised for purchase of property.
- For Benami transactions there is a separate law. Under income tax, if you will be unable to explain the source of investment then you need to pay tax @78% plus interest on Rs.8 lacs.