VIJAYAWADA: If you have carried out a `high-value' transaction like sale of land and made good money during the financial year coming to an end in a week, then you better pay your advance tax on capital gain before March 31.

Income Tax authorities have cautioned those who have not paid any tax on transactions of land and property not to be complacent, lest they should pay the entire tax with interest and penalty after March 31. There would also be a chance of being prosecuted for not paying the tax. For land transactions, tax at the rate of 30 per cent of the total gain would have to be paid.

Income-Tax Commissioner R.C. Pramanik said at a press conference on Friday that the department had taken note of the high number of real estate transactions taking place almost every day in and around Vijayawada, particularly along the route from Vijayawada to Machilipatnam and also along the proposed outer ring road from Gollapudi to Gannavaram. Non-resident Indians, software professionals, individuals working in Tollywood and other businessmen and industrialists were showing keen interest in acquiring property in these areas.

Data collection

With the help of the data collected from the Registration Department, the Income Tax Department had been able to trace out information about huge amounts of money that changed hands in these transactions. "Many sellers have already received notices from the department, while others are in the process of receiving the same," Mr. Pramanik said.

The Commissioner explained that March 15 was the original date for payment of advance tax on gains made out of sale of land, property, jewellery, shares and the like. Another 15 days of time would be given for paying the same without any interest and penalty.

Mr. Pramanik pointed out that the Income Tax Department had the authority to re-open the returns up to six years of the filing.

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