Karnataka Tightens Oversight on Property Deals Over ₹30 Lakh: Income Tax Dept to Be Notified at Registration

Buyers and sellers of property worth over ₹30 lakh in Karnataka will now find their transactions directly reported to the Income Tax Department at the time of registration. The Karnataka Stamp and Registration Department has issued new instructions mandating sub-registrars to submit a Specified Financial Transaction Form (SSFT) during high-value deals.

This move, driven by Section 285BA(1) of the Income Tax Act, aims to boost financial transparency and curb black money in the real estate sector. According to a recent circular, sub-registrars must now collect detailed financial and personal information from both parties and upload it as part of the registration process.

Details Required:

• PAN and Aadhaar numbers
• Full address and date of birth
• Mobile number and email ID
• Property and registration details
• Mode of payment
• Form 60 (if PAN is not available)

Without submission of the SSFT form, the registration will not be deemed complete, and the final property documents will be withheld.

The directive follows concerns from the Income Tax Department that many sub-registrars were either delaying or missing the submission of required information, hindering oversight.

Though most sub-registrars already comply, occasional lapses due to workload have prompted stricter enforcement. The department has warned of disciplinary action for non-compliance moving forward.

Online Filing Likely Soon

In a bid to streamline the process, officials are considering allowing buyers and sellers to upload the SSFT form directly on the Kaveri-2.0 portal. This would simplify documentation and reduce manual errors for both the Registration and Income Tax departments.

Legal Background

As per current law, property deals above ₹10 lakh or even below that threshold if the government-determined stamp value exceeds ₹30 lakh must be reported to the Income Tax Department. The responsibility lies with the registrar, whose reporting helps prevent unaccounted transactions and reinforces financial accountability in real estate.