Income Tax (I-T) violations through unreported property deals unearthed

Mysuru:  In a major crackdown, officials from the Intelligence and Criminal Investigation Directorate of the Income Tax (I-T) Department uncovered unreported taxable transactions worth nearly Rs. 4,500 crore during recent spot verifications at four Sub-Registrar Offices.

Among these were the Mysuru North Sub-Registrar Office, located in the Mini Vidhana Soudha in Nazarbad and offices in Bengaluru’s Banaswadi, K.R. Puram and Varthur.

The inspections revealed that the Sub-Registrar Offices had failed to provide crucial information regarding property registrations spanning the financial years 2021-22, 2022-23 and 2023-24.

Despite registering properties valued collectively at Rs. 27,752 crore during this period, these offices reportedly did not disclose details of transactions worth Rs. 4,500 crore to the Income Tax Department, violating statutory rules.

Key violations: According to sources within the I-T Department, it was found that the Sub-Registrar Offices had not collected essential documents, such as PAN numbers from buyers and sellers involved in property transactions. This lapse obstructed authorities from verifying the sources of income of the transacting parties.

Further investigations revealed that sale deeds of high-value properties were registered without adhering to mandatory protocols. It is required by law for Sub-Registrar Offices to obtain PAN details for property transactions exceeding Rs. 10 lakh and to report sales exceeding Rs. 30 lakh to the I-T Department through the annual Statement of Financial Transactions.

By failing to comply with these regulations, the Sub-Registrar Offices allegedly facilitated large-scale tax evasion, resulting in significant revenue losses for the Government.

Officials noted that unreported taxable transactions have not only deprived the Government of substantial tax revenues but have also undermined the transparency and accountability of property dealings. These discrepancies highlight systemic lapses in compliance and enforcement at Sub-Registrar level.

Efforts to obtain a statement from Kiran, the former Sub-Registrar of Mysuru North, regarding the findings proved unsuccessful as he was unavailable for comment.