1.1.

Purchase of Immovable Property (NIN01)

Verification Issue

Whether the taxpayer is liable to file return of income on account of investment made in purchase of
immovable property.

Overview

Under the Income-tax Act, any unexplained investment can be assessed as income of the relevant
financial year under sections 69 and 69B. Some important aspects are:

 As per Section 56(2)(vii), if a person receives an immovable property without consideration

(stamp valuation being more than Rs. 50,000) or if disclosed consideration is lower by more
than Rs. 50,000/- than the stamp valuation, the difference may be assessed as income in the
hands of the purchaser.

 Even if the sale deed has not been registered and only agreement to sale has been executed,
provisions of section 50C and 56(2) as above would apply.

Information Source

The related information source and key fields are as under:

 SFT-012 (Buyer) – Purchase by any person of immovable property.

 TDS-194IA (Deductor PAN)– TDS Statement – Payment on transfer of certain immovable

property other than agricultural land (Section 194IA)

Note:

 The “Information Source” field displays the name and PAN/TAN of the filer.
 The “Value” field displays the amount of consideration paid.
 The ‘Information status’ field displays if the taxpayer has /has not submitted the response.

Submission of Response
The response has to be provided in following format (Refer Response category – Source of funds):

Code Description Response Remarks

A1 Correct Information Value <Amount> + Remarks Refer Note 1 & 2.

A2 Out of earlier income or savings <Amount> + Remarks Refer Note 3 & 4

A3 Out of receipts exempt from tax <Exempt income wise Refer Note 5
list>

A4 Received from identifiable persons <PAN wise list> Refer Note 6

(with PAN)

A5 Received from identifiable persons <Person wise list> Refer Note 7

(without PAN)

A6 Received from un-identifiable <Nature of transaction Refer Note 8

persons wise list>

A7 Others <Amount> + Remarks Refer Note 9

A8 Unexplained Amount A1 – Refer Note 10

(A2+A3+A4+A5+A6+A7)

Guidance for Submission of Response

The guidance for submission of response is as under:

1. Correct Information Value (A1) enter here total amount paid for purchase of the property,
including any expenses incurred e.g. stamp duty. In case, there are other co-owners, the
taxpayer should mention his share of investment here and mention Names, PANs and shares
of other co-owners in ‘Remarks’ text box.
2. If the taxpayer has not made any investment/expenditure as above or a different amount has
been paid, correct information value related to above information (A1) may be shown as 0 or
a different value may be given. Suitable remarks may be provided in the remarks text box.
3. If the amount is claimed to be from more than one category, the source of amount may be
assigned under various categories in the following sequence:
4. Out of earlier income or savings (A2) if any part of the investment/ expenditure has been made
out of earlier income or savings, mention the amount here. Suitable remarks may be provided
in the remarks text box.
5. Out of receipts exempt from tax (A3) Value may be provided after selecting the applicable
Exempt income type from the following drop down list:-
o Exempt interest income u/s 10.
o Exempt dividend income u/s 10(34)
o Exempt long-term capital gains on shares u/s 10(38).
o Agricultural income u/s 10(1).
o Share in total income of firm/AOP etc. u/s 10(2A)
o Income not taxable in India.
o Others.
If this field is selected, the following row is displayed:-

Exempt Income Type Amount Remarks

More rows can be added by clicking on the button ‘Add Row’. Suitable remarks may be
provided in the remarks text box.

6. Received from identifiable persons (with PAN) (A4) If any amount has been received from
identifiable persons who are having PANs, the details of the same may be given here. If this
field is selected, the following row is displayed:-
PAN of Name of Financial Transaction Transaction
Amount Remarks
Person Person Year Type Mode

The values shown in drop down for the Transaction Type are:-
o Sales
o Loan Received
o Loan Repayment
o Gift Received
o Donation Received
o Other Receipt.
The values of Transaction Mode are ‘Cash’ and ‘Non-cash’. More rows can be added by clicking
on the button ‘Add Row’. Suitable remarks may be provided in the remarks text box.

7. Received from identifiable persons (without PAN) (A5) If any amount has been received from
identifiable persons who are not having PANs, the details of the same may be given here. If this
field is selected, the following row is displayed:-
Address Financial
Name of Pin Transaction Transaction
of Year Amount Remarks
Person code Type Mode
Person
 The values of Transaction Type and Transaction Mode are same as in Note 6. More rows can be
added by clicking on the button ‘Add Row’. Suitable remarks may be provided in the remarks
text box.
8. Received from un-identifiable persons (A6) If any amount has been received from un-
identifiable persons, the details of the same may be given here. If this field is selected, the
following row is displayed:-
Financial Year Transaction Type Transaction Mode Amount Remarks

The values of Transaction Type and Transaction Mode are same as in Note 6. More rows can be
added by clicking on the button ‘Add Row’. Suitable remarks may be provided in the remarks
text box.
9. Others (A7) if there is any amount which is not covered in any of the above categories, for
example, if any amount was declared in Income Disclosure Scheme, 2016, such amount may be
mentioned here. Suitable remarks may be provided in the remarks text box.
10. Unexplained Amount (A8) is a computed figure (A1 – (A2+A3+A4+A5+A6+A7)). This figure
represents amount for which no explanation has been provided.