New Delhi, Aug. 6 -- Splitting a property sale into separate components for immovable assets and movables such as furniture and fixtures is increasingly being used as a tax-saving tool. But without proper documentation, this practice can backfire during income tax scrutiny.

Bhawna Kakkar, chartered accountant and founder of Kakkar & Company, said it is becoming increasingly common in residential property transactions to split the sale value between the real estate and items like furniture, white goods, and other household items.

This tactic is often used by sellers to reduce their capital gains tax burden. But experts warn that overstating the value of such items-particularly in the absence of documentary proof, can backfire. The approa...