Income Tax Department Uncovered Massive Unreported Property Deals Worth Rs 3.12 Lakh Crore Across Multiple States:

Income Tax Department Uncovered Massive Unreported Property Deals Worth Rs 3.12 Lakh Crore Across Multiple States The Income Tax Department carried out surveys and on-the-spot checks across Punjab, Haryana, Himachal Pradesh, Chandigarh, Jammu and Kashmir, and Ladakh. These checks found more than 2.5 lakh property transactions in the past year that were either not reported or had incorrect PAN details. The total value of these transactions is estimated at Rs 3.12 lakh crore. Officials said many of these cases may involve unaccounted or “black” money. A large number of such transactions were found in cities like Gurugram, Chandigarh, Faridabad, Sonepat, and Karnal, along with some other districts. Rules for Reporting High-Value Transactions Under Section 285BA of the Income Tax Act, certain institutions must report high-value financial transactions. These include Banks, Sub-registrar offices (SROs), NBFCs, and mutual funds. They must furnish a Statement of Financial Transactions (SFT). This report includes details of major transactions such as property deals, interest payments, and dividends. Each transaction must be linked with the taxpayer’s PAN. SROs are legally required to report all property transactions above Rs 30 lakh. The Income Tax Department then matches this data with income tax returns. Findings from Field Checks The Directorate of Intelligence and Criminal Investigation, a unit of the Income Tax Department, carried out 42 spot verifications during the tax period 2025-26. Most of these checks took place at Tehsil offices across the north-west region. The purpose was to identify problems in the reporting of high-value transactions. Officials found that many SROs either did not report transactions above Rs 30 lakh or provided incorrect PAN details. According to officials:

• More than 2.50 lakh such property transactions were identified
• Many were recorded in Tehsil offices in Gurugram, Faridabad, Sonepat, Chandigarh, and several districts of Punjab
• The total estimated value of these transactions is Rs 3.12 lakh crore

The department has also started similar checks in other parts of India. While complete national data is not yet available, officials believe such questionable transactions across the country could exceed Rs 7.50 lakh crore. Impact of Incorrect Reporting Officials said it is not clear whether SRO staff were involved with taxpayers in all cases. However, incomplete or wrong reporting makes the data unreliable. This creates problems for tax verification and makes it harder for the department to track high-value transactions and ensure proper tax compliance. Actions Taken by the Department After these findings, the Income Tax Department has contacted SROs and other reporting authorities. It has asked them to:

• Provide correct and complete PAN details
• Report all high-value property transactions properly

The department has already imposed fines on several SRO officers. More action may follow if the rules are not followed. Expert Opinion Ashish K Singh, Managing Partner at Capstone Legal, said it is unusual for one government department to fine another for breaking a central law. He noted that although the penalty amount is not very high, it sends a strong message to SROs across India to follow the rules properly.