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Declaring purchase of house

Arun (Freelance Software Professional) (183 Points)

03 July 2009

I have purchased a new house and I have taken home loan for that. I would be claiming tax benefit accordingly. But still is it a good idea to declare the purchase of flat while filing the IT return? If yes then what amount should be declared and under which schedule? Should I declare the cost at which registry is done plus the cost of registry i.e. excluding any other charges like maintenance charges, parking charges etc. under AIR schedule with transaction code 006?

One layman's fear is, will such a declaration invite unnecessary scrutiny by IT authorities?

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2 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 04 July 2009

Mr.Arun

As per the provisions of Rule 114E the registering authorities will report every purchase and sale of immovable property of the value of Rs.Thirty Lakhs or more to the Income-tax Department. Hence the fact of purchase of the property will be in the records of the Income-tax Authorities if the value of the purchase is Rs.Thirty Laksh or more. Hence you should also inform the authorities if the value of the purchase is Rs.Thirty Lakhs or more. You should report the value as per the registered document including the expenses for stamp duty, regisgistration fees, commission if any paid for purchase, document drafting charges and other incidental charges incurred for the purchase of the property. The total sum of the above will be the cost of the property.

With Best wishes

Sathikonda

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Arun (Freelance Software Professional) (183 Points)
Replied 04 July 2009

Thanks for a conclusive reply. Just to confirm my understanding, so according to you, including the charges like maintenance charges and parking fees etc is ok?