How to report to it dept after buying property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2016
Hello Everyone,
I recently bought a house worth Rs 48,50,000/- in the last financial year (2015-26). I have been submitting my IT returns for the past 4 years.
I would like to know if I should inform IT department about this purchase. If yes, how should I do that.
Thanks a lot
Regards,
Ganesh DHARMALINGAM
I recently bought a house worth Rs 48,50,000/- in the last financial year (2015-26). I have been submitting my IT returns for the past 4 years.
I would like to know if I should inform IT department about this purchase. If yes, how should I do that.
Thanks a lot
Regards,
Ganesh DHARMALINGAM
20 July 2016
Income tax act doesn't say that buyer should inform IT department about property purchases. But in case the total income exceeds Rs. 50 lakhs, particulars of assets ( which includes the house you purchased) should be filled in the Income tax return form.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2016
Thanks for the reply.
I thought, it has to be reported since it is a high value transcation,. Otherwise, I may get notices from IT department.
I thought, it has to be reported since it is a high value transcation,. Otherwise, I may get notices from IT department.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2016
Please let me know how to mention in IT returns if it is above 50 Lakhs.
28 July 2024
When you purchase a property, especially one with significant value like Rs 48,50,000, it's important to ensure that your income tax returns (ITR) accurately reflect this transaction. Here's a step-by-step guide on how to report this to the Income Tax Department:
### **1. Reporting Property Purchase in Your Income Tax Return**
**1.1. Reporting the Transaction**
- **Asset Declaration**: While you don't need to separately inform the IT department outside of your income tax returns, you must disclose the property purchase in your ITR. This is part of the routine process of declaring assets and liabilities.
- **Income Tax Return Form**: Use the appropriate ITR form based on your income sources and tax status. For individual taxpayers with income from salaries, business, or other sources, ITR-1 or ITR-2 is typically used. For property transactions, ITR-2 is more suitable.
**1.2. How to Report in ITR-2**
- **Schedule AL (Assets and Liabilities)**:
- **Asset Declaration**: In ITR-2, there is a section called **Schedule AL** where you need to declare your assets and liabilities. Under the **Schedule AL**, you will need to fill out details regarding the property you have purchased.
- **Property Details**: Enter details such as the address, date of acquisition, and the amount paid. Ensure the details match the actual transaction.
- **Schedule EI (Exempt Income)**:
- If the property is used for earning income, such as rental income, you will need to report this under **Schedule EI**. This schedule is for reporting any income that is exempt from tax but must be disclosed.
- **Schedule VI-A (Deductions)**:
- **Housing Loan**: If you have taken a loan to purchase the property, you can claim deductions under **Section 24(b)** for interest on home loan and **Section 80C** for principal repayment. Report these deductions in **Schedule VI-A**.
### **2. Disclosure of High-Value Transactions**
**2.1. Annual Information Return (AIR)**
- **AIR Filing**: For high-value transactions, such as property purchases, the details are typically captured in the Annual Information Return (AIR) filed by the seller of the property. You don't need to file this separately, but it will be reflected in the IT Department's records.
**2.2. Form 26AS**
- **Verification**: Ensure that the transaction is correctly reflected in **Form 26AS**, which is a consolidated tax statement that includes information on high-value transactions, tax deducted at source (TDS), and other income-related information.
### **3. Other Considerations**
**3.1. Documentation**
- **Keep Records**: Maintain all documents related to the purchase, such as the sale deed, payment receipts, and registration documents. These documents may be required in case of an audit or any queries from the IT department.
**3.2. Professional Advice**
- **Consult a Tax Professional**: If you are unsure about the reporting process or need guidance specific to your situation, consulting a tax advisor or chartered accountant can provide clarity and ensure compliance.
### **Summary**
1. **Report the Property Purchase**: Use ITR-2 and disclose the property under **Schedule AL**. Include details of the property and any housing loan deductions if applicable.
2. **Verify Transactions**: Check **Form 26AS** to ensure the transaction details are correctly captured.
3. **Maintain Documentation**: Keep all related documents for future reference and compliance.
4. **Seek Professional Advice**: If needed, consult with a tax professional to ensure proper reporting and compliance.
By accurately reporting the property purchase in your tax returns, you ensure that your records are up-to-date and compliant with tax regulations.
### **1. Reporting Property Purchase in Your Income Tax Return**
**1.1. Reporting the Transaction**
- **Asset Declaration**: While you don't need to separately inform the IT department outside of your income tax returns, you must disclose the property purchase in your ITR. This is part of the routine process of declaring assets and liabilities.
- **Income Tax Return Form**: Use the appropriate ITR form based on your income sources and tax status. For individual taxpayers with income from salaries, business, or other sources, ITR-1 or ITR-2 is typically used. For property transactions, ITR-2 is more suitable.
**1.2. How to Report in ITR-2**
- **Schedule AL (Assets and Liabilities)**:
- **Asset Declaration**: In ITR-2, there is a section called **Schedule AL** where you need to declare your assets and liabilities. Under the **Schedule AL**, you will need to fill out details regarding the property you have purchased.
- **Property Details**: Enter details such as the address, date of acquisition, and the amount paid. Ensure the details match the actual transaction.
- **Schedule EI (Exempt Income)**:
- If the property is used for earning income, such as rental income, you will need to report this under **Schedule EI**. This schedule is for reporting any income that is exempt from tax but must be disclosed.
- **Schedule VI-A (Deductions)**:
- **Housing Loan**: If you have taken a loan to purchase the property, you can claim deductions under **Section 24(b)** for interest on home loan and **Section 80C** for principal repayment. Report these deductions in **Schedule VI-A**.
### **2. Disclosure of High-Value Transactions**
**2.1. Annual Information Return (AIR)**
- **AIR Filing**: For high-value transactions, such as property purchases, the details are typically captured in the Annual Information Return (AIR) filed by the seller of the property. You don't need to file this separately, but it will be reflected in the IT Department's records.
**2.2. Form 26AS**
- **Verification**: Ensure that the transaction is correctly reflected in **Form 26AS**, which is a consolidated tax statement that includes information on high-value transactions, tax deducted at source (TDS), and other income-related information.
### **3. Other Considerations**
**3.1. Documentation**
- **Keep Records**: Maintain all documents related to the purchase, such as the sale deed, payment receipts, and registration documents. These documents may be required in case of an audit or any queries from the IT department.
**3.2. Professional Advice**
- **Consult a Tax Professional**: If you are unsure about the reporting process or need guidance specific to your situation, consulting a tax advisor or chartered accountant can provide clarity and ensure compliance.
### **Summary**
1. **Report the Property Purchase**: Use ITR-2 and disclose the property under **Schedule AL**. Include details of the property and any housing loan deductions if applicable.
2. **Verify Transactions**: Check **Form 26AS** to ensure the transaction details are correctly captured.
3. **Maintain Documentation**: Keep all related documents for future reference and compliance.
4. **Seek Professional Advice**: If needed, consult with a tax professional to ensure proper reporting and compliance.
By accurately reporting the property purchase in your tax returns, you ensure that your records are up-to-date and compliant with tax regulations.
28 July 2024
When you purchase a property, especially one with significant value like Rs 48.50L, it's important to ensure that your income tax returns (ITR) accurately reflect this transaction. Here's a step-by-step guide on how to report this to the Income Tax Department:
### **1. Reporting Property Purchase in Your Income Tax Return**
**1.1. Reporting the Transaction**
- **Asset Declaration**: While you don't need to separately inform the IT department outside of your income tax returns, you must disclose the property purchase in your ITR. This is part of the routine process of declaring assets and liabilities.
- **Income Tax Return Form**: Use the appropriate ITR form based on your income sources and tax status. For individual taxpayers with income from salaries, business, or other sources, ITR-1 or ITR-2 is typically used. For property transactions, ITR-2 is more suitable.
**1.2. How to Report in ITR-2**
- **Schedule AL (Assets and Liabilities)**:
- **Asset Declaration**: In ITR-2, there is a section called **Schedule AL** where you need to declare your assets and liabilities. Under the **Schedule AL**, you will need to fill out details regarding the property you have purchased.
- **Property Details**: Enter details such as the address, date of acquisition, and the amount paid. Ensure the details match the actual transaction.
- **Schedule EI (Exempt Income)**:
- If the property is used for earning income, such as rental income, you will need to report this under **Schedule EI**. This schedule is for reporting any income that is exempt from tax but must be disclosed.
- **Schedule VI-A (Deductions)**:
- **Housing Loan**: If you have taken a loan to purchase the property, you can claim deductions under **Section 24(b)** for interest on home loan and **Section 80C** for principal repayment. Report these deductions in **Schedule VI-A**.
### **2. Disclosure of High-Value Transactions**
**2.1. Annual Information Return (AIR)**
- **AIR Filing**: For high-value transactions, such as property purchases, the details are typically captured in the Annual Information Return (AIR) filed by the seller of the property. You don't need to file this separately, but it will be reflected in the IT Department's records.
**2.2. Form 26AS**
- **Verification**: Ensure that the transaction is correctly reflected in **Form 26AS**, which is a consolidated tax statement that includes information on high-value transactions, tax deducted at source (TDS), and other income-related information.
### **3. Other Considerations**
**3.1. Documentation**
- **Keep Records**: Maintain all documents related to the purchase, such as the sale deed, payment receipts, and registration documents. These documents may be required in case of an audit or any queries from the IT department.
**3.2. Professional Advice**
- **Consult a Tax Professional**: If you are unsure about the reporting process or need guidance specific to your situation, consulting a tax advisor or chartered accountant can provide clarity and ensure compliance.
### **Summary**
1. **Report the Property Purchase**: Use ITR-2 and disclose the property under **Schedule AL**. Include details of the property and any housing loan deductions if applicable.
2. **Verify Transactions**: Check **Form 26AS** to ensure the transaction details are correctly captured.
3. **Maintain Documentation**: Keep all related documents for future reference and compliance.
4. **Seek Professional Advice**: If needed, consult with a tax professional to ensure proper reporting and compliance.
By accurately reporting the property purchase in your tax returns, you ensure that your records are up-to-date and compliant with tax regulations.
### **1. Reporting Property Purchase in Your Income Tax Return**
**1.1. Reporting the Transaction**
- **Asset Declaration**: While you don't need to separately inform the IT department outside of your income tax returns, you must disclose the property purchase in your ITR. This is part of the routine process of declaring assets and liabilities.
- **Income Tax Return Form**: Use the appropriate ITR form based on your income sources and tax status. For individual taxpayers with income from salaries, business, or other sources, ITR-1 or ITR-2 is typically used. For property transactions, ITR-2 is more suitable.
**1.2. How to Report in ITR-2**
- **Schedule AL (Assets and Liabilities)**:
- **Asset Declaration**: In ITR-2, there is a section called **Schedule AL** where you need to declare your assets and liabilities. Under the **Schedule AL**, you will need to fill out details regarding the property you have purchased.
- **Property Details**: Enter details such as the address, date of acquisition, and the amount paid. Ensure the details match the actual transaction.
- **Schedule EI (Exempt Income)**:
- If the property is used for earning income, such as rental income, you will need to report this under **Schedule EI**. This schedule is for reporting any income that is exempt from tax but must be disclosed.
- **Schedule VI-A (Deductions)**:
- **Housing Loan**: If you have taken a loan to purchase the property, you can claim deductions under **Section 24(b)** for interest on home loan and **Section 80C** for principal repayment. Report these deductions in **Schedule VI-A**.
### **2. Disclosure of High-Value Transactions**
**2.1. Annual Information Return (AIR)**
- **AIR Filing**: For high-value transactions, such as property purchases, the details are typically captured in the Annual Information Return (AIR) filed by the seller of the property. You don't need to file this separately, but it will be reflected in the IT Department's records.
**2.2. Form 26AS**
- **Verification**: Ensure that the transaction is correctly reflected in **Form 26AS**, which is a consolidated tax statement that includes information on high-value transactions, tax deducted at source (TDS), and other income-related information.
### **3. Other Considerations**
**3.1. Documentation**
- **Keep Records**: Maintain all documents related to the purchase, such as the sale deed, payment receipts, and registration documents. These documents may be required in case of an audit or any queries from the IT department.
**3.2. Professional Advice**
- **Consult a Tax Professional**: If you are unsure about the reporting process or need guidance specific to your situation, consulting a tax advisor or chartered accountant can provide clarity and ensure compliance.
### **Summary**
1. **Report the Property Purchase**: Use ITR-2 and disclose the property under **Schedule AL**. Include details of the property and any housing loan deductions if applicable.
2. **Verify Transactions**: Check **Form 26AS** to ensure the transaction details are correctly captured.
3. **Maintain Documentation**: Keep all related documents for future reference and compliance.
4. **Seek Professional Advice**: If needed, consult with a tax professional to ensure proper reporting and compliance.
By accurately reporting the property purchase in your tax returns, you ensure that your records are up-to-date and compliant with tax regulations.
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