Business
Tax notice alert! Buying land above Rs 30 lakh? Here’s why you may come under Income Tax Department scrutiny and how to avoid it – The Times of India
A new property purchase can feel like a proud milestone — until a letter from the Income Tax Department lands in your inbox asking where your money came from. Experts say that such notices are becoming increasingly common as tax authorities use advanced data analytics to verify whether property buyers’ declared income matches their level of investment.“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). Once this data is captured in the taxpayer’s Annual Information Statement (AIS), the department cross-verifies whether the buyer’s declared income supports the investment,” said Abhishek Soni, CEO and Co-founder of Tax2win, in an interview with ET.Why land purchases attract I-T scrutinyWith tighter digital surveillance and automatic reporting of property deals, every high-value land transaction now feeds into the tax department’s monitoring system. Even those using legitimate savings may receive queries seeking an explanation of their funding source.According to Soni, the tax department’s primary concern is whether an individual is living beyond their declared means — a potential indicator of tax evasion. The most common notice seeks clarification on the “source of funds” used for the property purchase.Such scrutiny often arises when funds come from sources not automatically reflected in tax records — such as savings accumulated before tax filing began, gifts from relatives, inheritance, sale of gold or shares, or loans from friends or family.An income tax notice may also be triggered if there is a mismatch between the declared purchase value and the stamp duty value (SDV), or if the transaction appears undervalued. Under Section 133(6), tax authorities can seek information for up to three years from the relevant assessment year, and up to ten years if the unreported or “escaped” income exceeds Rs 50 lakh.Soni explained to ET that if the stamp duty value exceeds the actual purchase price by more than 10 per cent (and the difference is over Rs 50,000), the excess is treated as taxable income in the hands of the buyer under “income from other sources.”How to handle a tax noticeExperts advise that the first step after receiving an income tax notice is to respond promptly and accurately. “Organise your bank statements, loan documents, gift deeds, sale receipts and any other relevant records. The clearer your documentation, the quicker the resolution,” Soni said.Most notices provide a short response window. If more time is needed, taxpayers should at least file an acknowledgment and request an extension. Ignoring the notice or providing incomplete responses could lead to penalties under Section 272A(2) — Rs 100 per day until compliance — or even a full reassessment under Section 148, where the assessing officer can estimate income and proceed on their own judgment.Urban agricultural land purchases are also reportable, Soni said, as they are treated like capital assets. “While rural agricultural land purchases are less likely to be flagged, the department may still ask for proof of income if the transaction value looks disproportionate,” he added.How to avoid getting flaggedTax professionals recommend proactive financial transparency to avoid I-T scrutiny. “Maintain a clear money trail — record every transaction and avoid large cash payments,” Soni told ET.He added that formal documentation for all sources of funds — including family loans, inheritances, and sale proceeds — is crucial. “If such income isn’t reflected in your ITR, file an updated return before making the property purchase,” he advised.For those with multiple income streams, consulting a chartered accountant before large purchases is advisable to ensure income declarations and expenditures align.Soni concluded that with the government’s digital monitoring expanding, the tax department’s systems are becoming more data-driven. “Prevention is always better than scrambling for documents after a notice arrives. Paying taxes honestly and keeping proper documentation isn’t just about compliance — it’s about long-term financial peace,” he said.
The US-Israel Iran war has halted almost all traffic in a key waterway and the price Brent crude has surged.
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Crunch talks between resident doctors and the Government are set to continue in a bid to avert strike action.
Sir Keir Starmer has given the resident doctors committee of the British Medical Association (BMA) a deadline to reconsider a deal on pay and jobs which includes an offer of thousands of extra NHS training posts.
It is understood the proposal will be removed from the deal if resident doctors in England press ahead with a six-day strike from April 7 in a row over jobs and pay.
Dr Jack Fletcher, chairman of the resident doctors committee of the union, said: “It is wrong for Government to withhold desperately-needed jobs as part of negotiating tactics.
“Anyone who works in the NHS knows that patients need these 4,000 jobs created as soon as possible.
“We made that very clear to Government in our meetings today.
“We are not interested in arbitrary deadlines – we will be looking to get this dispute ended right up to the last minute.
“We believe there is a deal there to be done if Government is willing to withdraw the changes it made at the last minute that reduced the funding for pay rises. Talks continue.”
It comes as senior medics announced they were escalating their disputes with the Government.
Consultants and other senior doctors are to be balloted on industrial action after ministers announced they would be getting a 3.5% pay award.
Simultaneous ballots of consultants and specialist, associate specialist and specialty (SAS) doctors will run from May 11 until July 6.
Addressing resident doctors, Prime Minister Sir Keir Starmer wrote in The Times: “The truth is this: no-one benefits from rejecting this deal.
“Resident doctors will be worse off. Instead of improved pay, progression and support, they will receive the standard pay award this year, with none of the reforms that would have strengthened their working lives.”
The deal sets out a minimum of 4,000 new additional specialty posts to be delivered over the next three years.
NHS England boss Sir Jim Mackey confirmed the offer to expand training places will “come off the table” if an agreement is not reached.
The walkout, which is due to run from 7am on April 7 until 6.59am on April 13, will be the 15th round of strikes by resident doctors in England since 2023.
In a letter to health leaders, Mike Prentice, national director for emergency planning at NHS England, wrote: “We expect this round to be challenging as there is a shorter notice period, bank holidays within the notice period and the action itself falling during the Easter holidays.
“This will represent a significant strain on staffing resources to provide safe cover.”
Business
Iran oil returns: India set to receive first cargo in 5 years, tanker heads to Gujarat – The Times of India
India is set to receive its first shipment of Iranian crude oil since 2019, with a tanker carrying 600,000 barrels of oil en route to Gujarat following a temporary sanctions waiver by the US, according to PTI.Ship-tracking data indicates that the vessel Ping Shun is headed towards Vadinar port, marking a potential revival of Indo-Iran oil trade after nearly five years.“The Indo-Iranian oil trade has flickered back to life. Following the US administration’s decision to grant a 30-day window for Iranian oil “on the water” due to regional conflict, the vessel Ping Shun is now en route to Vadinar (in Gujarat) with 600,000 barrels of crude. This is the first such delivery since May 2019 and comes at a critical time for Indian refiners facing tightening inventories,” said Sumit Ritolia, Lead Research Analyst, Refining and Modelling at Kpler.The development follows Washington’s decision earlier this month to allow a 30-day window for the purchase of Iranian oil already at sea, aimed at easing global oil prices amid the ongoing US-Israel conflict with Iran. The window is set to expire on April 19.While the buyer of the cargo remains unidentified, Vadinar houses a 20 million tonnes per annum refinery operated by Rosneft-backed Nayara Energy and also serves as a landing point for crude supplies to inland refineries such as BPCL’s Bina unit.India’s oil ministry has so far maintained that any decision to resume imports from Iran will depend on techno-commercial viability.Before sanctions were tightened in 2018, India was among the largest buyers of Iranian crude, importing both Iran Light and Iran Heavy grades due to refinery compatibility and favourable pricing terms.Imports ceased in May 2019 after US sanctions were reimposed, with India shifting to alternative suppliers including the Middle East and the US. At its peak, Iranian crude accounted for 11.5 per cent of India’s total imports.India had imported about 518,000 barrels per day (bpd) of Iranian oil in 2018, which declined to 268,000 bpd between January and May 2019 during a sanctions waiver period before dropping to zero thereafter.“The Aframax Ping Shun (IMO 9231901) loaded with Iranian crude oil from Kharg Island in early March has emerged as the first vessel observed signalling a destination of Vadinar, India since May 2019, following sanction reimposition on Iranian oil by the first Trump administration,” Ritolia said.The tanker is estimated to have loaded around 600,000 barrels from Kharg Island around March 4 and is expected to reach Vadinar on April 4.An estimated 95 million barrels of Iranian oil are currently stored on vessels at sea, of which around 51 million barrels could be supplied to India, while the rest may be directed to China and Southeast Asian markets.However, payment mechanisms remain uncertain as Iran continues to be excluded from the SWIFT global banking system, complicating international transactions.Earlier, payments were routed in euros through Turkish banks, but that channel is no longer available following renewed sanctions restrictions.Iran was first disconnected from SWIFT in 2012 due to EU sanctions over its nuclear programme, with further disruptions in 2018 after the US reimposed sanctions, limiting its ability to receive payments and access foreign currency reserves.
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