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.
A Nike logo is displayed at a Nike store in Austin, Texas, Feb. 5, 2026.
Brandon Bell | Getty Images
Shares of Nike fell in extended trading Tuesday after the retailer warned sales will fall for the rest of the calendar year, led by an expected 20% decline in its key China market during the current quarter.
Chief Financial Officer Matt Friend said during the company’s earnings call that Nike expects sales for its current fiscal fourth quarter to drop between 2% and 4%, compared with Wall Street estimates of a 1.9% increase, according to LSEG.
For the duration of the calendar year, Friend said, the company expects sales to fall by a low single-digit percentage, led by growth in North America and offset by declines in China. That outlook wasn’t comparable to estimates.
Nike beat expectations across the business on both the top and bottom lines for its fiscal third quarter, but its guidance left investors with more questions about how long its turnaround will take. Friend also cautioned that Nike’s guidance was based off of where the global economic picture stands today — and it could change given recent geopolitical volatility.
“We also recognize that the environment around us has become increasingly dynamic, and we could experience unplanned volatility due to the disruption in the Middle East, rising oil prices and other factors that could impact either input costs or consumer behavior,” said Friend. “We are focused on what we can control.”
Shares fell more than 8% in extended trading.
Here’s how the world’s largest sneaker company did for its fiscal third quarter, compared with estimates from analysts polled by LSEG:
- Earnings per share: 35 cents vs. 28 cents expected
- Revenue: $11.28 billion vs. $11.24 billion expected
The company’s reported net income for the three-month period that ended Feb. 28 was $520 million, or 35 cents per share. That’s a 35% decline from $794 million, or 54 cents per share, a year earlier. That plunge came as Nike’s gross profit margin slid 1.3 percentage points to 40.2%, “primarily due to higher tariffs in North America,” the company said.
Sales were flat at $11.28 billion, compared to $11.27 billion last year.
While Nike beat expectations on the top and bottom lines, it posted a mixed picture regionally. Nike’s largest market of North America continued to show steady growth, as revenue climbed 3% to $5.03 billion, but that was just shy of Wall Street’s expectations of $5.04 billion, according to StreetAccount.
Meanwhile, Nike’s Greater China market continued to shrink, with revenue down 7% to $1.62 billion during the quarter. Still, that total beat analyst estimates of $1.50 billion, according to StreetAccount.
Nike is continuing to work through a colossal turnaround under CEO Elliott Hill. About a year and a half into his tenure, Hill has made strides in repairing parts of the business, but has been clear that it’ll take time for the entire company to improve given the retailer’s scale and complexity.
He reiterated that expectation on Tuesday, saying in a news release that “the pace of progress is different across the portfolio.”
“The areas we prioritized first continue to drive momentum,” Hill said. “The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of NIKE.”
Friend said Nike’s turnaround efforts “will continue to impact results over the balance of the calendar year.”
Nike’s recovery was already coming at a tough time as a global trade war dented its efforts to improve profitability and drive sales from inflation-weary shoppers. But now the athletic company will have to contend with a new war in the Middle East that’s already led to rising gas prices and is expected to send consumer prices even higher, which could push shoppers to cut back on nice-to-haves like new clothes and shoes to save money elsewhere.
“We continue to be encouraged by the momentum in North America. We’ve got a strong order book for summer,” Friend said. “We’re seeing positive signs and sell through. We’re not seeing a consumer reaction to what’s going on in the Middle East at this point in time, in North America.”
Hill has focused in part on revitalizing Nike’s business with wholesale partners as opposed to direct sales on its website and in stores. Wholesale revenue climbed 5% to $6.5 billion.
Meanwhile, direct sales slid 4% to $4.5 billion.
It is thought that thousands of people may have lost their jobs at Oracle, one of the world’s largest tech companies.
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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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