RERA Impact: Now, property dealers have to submit ITR of last 3 years to state authority

Highlights: 

1. Property dealers have to submit income tax return (ITR) of last three years to state RERA authority

2. In case of failure of submission of ITR, property dealers have to submit their declarations to the authority  

3. They will have to provide business details of last five years to RERA authority

Now, property dealers have to submit their Income Tax Return (ITR) of last three years to the government after the implementation of the Real Estate Act 2016,  Zee Business reported.  

The Government of India implemented the Real Estate Regulations and Development Act (RERA) nationwide on May 1 this year.

The RERA Act is aimed at addressing the grievances of property buyers who at times are cheated by developers on delay in delivery of under-construction properties, execution of said project plans, legitimacy of properties, etc., and is being touted as pro-consumer law, Zeebiz.com reported on May 9. 

ALSO READ: RERA Act: Here are 10 key benefits for home buyers

If the property dealers fail to submit ITR of last three years to state Real Estate Regulatory Authority (RERA) then they have to submit declaration on why the Income Tax Return (ITR) was not submitted, cited Zee Business reported.

Property dealers will have to give business details of last five years to RERA in addition to providing details on civil and criminal cases against them. 

According to Zeebiz.com report, it is mandatory for all real estate developers/promoters to compulsorily register ongoing and upcoming real estate projects with RERA authority.

During the registration of project, the builder has to provide the details of the property agent and on every deal the agent has to mention the registration number. 

Moreover, the property dealer along with his photo has to provide copy of permanent account number (PAN),address proof, receipt, rubber stamp, branch contact number, fax number and e-mail id to RERA authority. 

The act makes mandatory for developers/promoters to disclose project related details, including: project plan, layout, and government approvals related information to the customers such as sanctioned floor space index (FSI), number of buildings and wings, number of floors in each building, etc.,

Further, if any developer/promoter provides false information or contravenes the provisions of registration of real estate projects - he has to pay penalty upto 5% of the estimated cost of the project.