« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  CEOs favour FBT abolition... Professionals can’t claim Sec 32 tax benefit, says SC... » I-T dept mulls capital tax on property deals November, 29th 2007 In a tacit acknowledgment that it is virtually impossible to stamp out black money from real estate deals, income tax officials are in favour of a new levy on such transactions.   The suggestion is to introduce a capital transaction tax based on the circle rate of the state in which the deal is registered.   The reason for the move, which may be part of next years tax proposals in the Budget, is to ensure that the exchequer gets some revenues from the real estate boom.   The tax could be levied at the rate of one per cent on the declared value of the transaction either on the seller or the buyer. Property values are skyrocketing in the country and we know that there is massive under-reporting of actual transaction value, said a senior government official.   Buyers and sellers under-value property transactions to avoid paying high stamp duty and income tax, but they pay the brokers a fee, say, 1 per cent, on the entire value of the deal. The capital transaction tax can be levied at a very marginal rate, with the base being the existing circle rate in the local area, the official added.   Circle rates are area-based minimum rates applicable for registration of properties and vary from state to state. For instance, Delhi has been divided into eight circles graded A to H and the circle rates vary from Rs 6,000 to Rs 43,060 per square metre.   Typically, the cash-to-cheque or draft payment ratio (also called black and white in real estate circles) is 60:40.   In housing deals that are financed through institutional loans, the incidence of black money is lower. However, land deals, for which finance is harder to come by, tend to have a higher black money component.   It is such transactions on which income tax officials are focused. All real estate transactions of Rs 30 lakh and above have to be reported to the tax authorities by the registrars of properties.   This is a mandatory commitment as part of the Annual Information Return of seven different high-value financial transactions required to be furnished under section 285BA of the Income-Tax Act, 1961, by specified individuals and agencies.   In 2006-07, the number of real estate deals worth Rs 30 lakh and above went up by 40 per cent to nearly 108,000 across the country.