Builders, brokers' tax returns under I-T lens

If you are living in one of the four metros and have taken a fresh loan of Rs 1 crore or more, or have pumped in fresh capital of a similar amount in your business, your tax return is likely to be picked up for scrutiny this year.

The recent boom in the stock market, real estate, and personal loans has caught the attention of the taxman.

Government officials said the revenue department was considering inclusion of builders who follow the "Project Completion Method" in the list for scrutiny. Such builders usually defer payment of tax until completion of their project.

According to tax experts, the department could be keen to check if builders were deferring their tax liability.

The new norms are also likely to include professionals in select cities with gross receipts of Rs 10 lakh or more, if the total income declared is less than 20 per cent of the receipts.

There also appears to be a move to check ploughing of black money into business. The department is considering scrutinising all cases of "fresh capital" of up to Rs one crore in metros and Rs 10 lakh in other cities.

The brokerage limit for picking up cases of stockbrokers is being revised downwards from Rs 1 crore last year to Rs 50 lakh or above this year.

Field formations are likely to be asked to pick up all cases of stockbrokers and sub-brokers who disclose brokerage of Rs 50 lakh or more and whose total declared income is less than 10 per cent of such brokerage.