Mumbai: In a major exercise which is likely to shake up the political class, realty sector and businesses, the income-tax department, under section 21 of the Prohibition of Benami Property Transactions Act, 1988, has sought information from the office of the Maharashtra Inspector General of Registration (IGR) and Controller of Stamps on the registration of property transactions valued above Rs 5 crore in all districts and talukas of Mumbai and Navi Mumbai.
Interestingly, the I-T department has sought details with regard to such transactions from April 1, 2016 till date.
The timing of the I-T department’s move is crucial, especially as elections to the BrihanMumbai and Navi Mumbai Municipal Corporations are expected to take place by April. Besides, the department’s move coincides with the Maha Vikas Aghadi government partners Shiv Sena, NCP and Congress targeting the BJP-led government for deploying Central probe agencies and the I-T department to suppress the voice of the opposition.
In a letter, which is in the possession of The Free Press Journal, I-T Deputy Commissioner Teresa Joseph said it was not necessary to give any physical documents but the information was to be sent in Excel format. “In relation to the proceedings under the Prohibition of Benami Property Transactions Act, 1988, you are requested to share the details of properties registered in all districts and talukas of Mumbai and Navi Mumbai whose transacted value is above Rs 5 crore on the date of registration. The data is required from April 1, 2016 onwards till date,” says Joseph in the letter.
State Inspector General of Registration Shravan Hardikar told The Free Press Journal, “We have received the letter and the information is being compiled. It will be sent as soon as possible.”
A revenue department officer said, “Since April 2016 till date, a minimum of 60,000 to 70,000 transactions valued above Rs 5 crore may have been registered in Mumbai and Navi Mumbai. The department charges 5 per cent stamp duty on market value. These transactions may be valued at Rs 6,000 crore to Rs 7,000 crore per annum.” However, the details will be known after the IGR submits the comprehensive information sought by the I-T department.
The officer said, as per the provision of income tax, all the transactions above Rs 30 lakh are reported to the I-T department under the annual information report. “However, the I-T department’s motive in seeking inputs on transactions above Rs 5 crore is not known,” the officer added.
As far as the realty market in Mumbai and Navi Mumbai is concerned, property registration is down by 20 per cent in January 2022 due to the prevailing pandemic situation and also because of fewer buyers in the realty market.
City-based tax consultant Vyankatesh Joshi explained that as per the provisions of the Act, any property, which is the subject matter of benami transaction, shall be liable to be confiscated by the Central Government. “Whoever is found guilty of the offence of benami transactions shall be punishable with rigorous imprisonment up to seven years and also liable to be fined up to 25 per cent of the fair market value of the property,” he said.
