Poor response to info returns

The finance ministry is concerned over the poor response in filing details about purchase and sale of property above Rs 30 lakh (Rs 3 million) under the Annual Information Returns, given the boom in the real estate sector.

As per details available with the ministry, of the 900 AIRs received, comprising a total value of around Rs 7,00,000 crore (Rs 7000 billion), up to the first week of October, there were only 300 transactions pertaining to purchase of property amounting to Rs 240 crore (Rs 2.4 billion) and 700 transactions relating to sale of property amounting to around Rs 100 crore (Rs 1 billion).

Following a review undertaken by Finance Minister P Chidambaram, the revenue department has been asked to undertake sensitisation programmes with registrars and sub-registrars of the states. There are estimated to be around 350 registrars and sub-registrars of property in each state.

While a meeting with the Inspector Generals of Registration of all states has already been convened, the revenue secretary K M Chandrashekar has also written to all Chief Secretaries asking them to ensure the AIR is filed only through computer in the computerised format, officials said.

Officials pointed out that several registrars from far-flung areas had submitted details of property sales in paper format, which could not be recognised.

Officials said that the revenue department had also been directed to advise banks to ensure that the returns are filed only by the main headquarters and not by their branches.

The issue of whether all commercial banks would be covered or not was also to be taken. 'At present only scheduled commercial banks have been covered,' an official said.

A break-up of the transactions recorded under the AIR reveals that in the case of cash deposits exceeding Rs 10 lakh (Rs 1 million) over 1,00,000 transactions were recorded valued at Rs 13,000 crore (Rs 130 billion).

Similarly, in case of credit cards involving aggregate payments of Rs 200,000 or more a total of 3,00,000 transactions were recorded valued at Rs 4,400 crore (Rs 44 billion).

Receipt from any person of an amount of two lakh rupees or more for acquiring units of a Mutual Fund amounted to 3,50,000 transactions amounting to Rs 4,00,000 crore (Rs 4000 billion).