The Income Tax Department has finally received pending financial data on property transactions worth around Rs 25,000 crore from Sub-Registrar Offices (SROs) across Vidarbha following a series of surveys and raids this year. The department will now analyse the data to identify high-value transactions and check whether buyers and sellers have met their tax obligations. With the data now submitted, the department has moved to the next stage of the exercise. Its risk management system and verification teams will examine the records and compare them with Income Tax returns and other available financial information. People whose transactions show possible discrepancies may be served notices and asked to explain their financial dealings and tax liabilities.

 

Sources said the exercise involved monitoring compliance by SROs and other entities required to report specified financial transactions. The department had been following up with the offices to obtain the pending information. The submission of the data marks the completion of one stage of the exercise. However, the scrutiny of individual transactions is now set to begin. Officials will examine the details to identify cases that require further verification. A mismatch between a reported transaction and the income declared in a tax return may lead to further inquiries. The exercise is part of the Statement of Financial Transactions (SFT) reporting system. Under this framework, specified institutions and authorities must report certain high-value financial transactions to the Income Tax Department. This allows the department to compare reported transactions with the financial details declared by taxpayers. Sources claimed that property transactions are an important part of this system.

 

The reporting framework covers the purchase and sale of immovable property valued at Rs 30 lakh or more, subject to applicable rules. Such transactions help the department identify cases where the value of a property deal may not match the income or financial details disclosed by the parties involved. Banks also report certain high-value transactions. These include cash deposits of Rs 50 lakh or more in current accounts and Rs 10 lakh or more in savings and other specified accounts during a financial year, subject to applicable provisions. The data received from the SROs will help the department build a clearer picture of property transactions across Vidarbha. Officials will check the information against available records before deciding whether any further action is required.