Karnataka Tightens Oversight On Property Deals Over Rs 30 Lakh: I-T Department Needs To Be Notified At Registration

Property Tax in Karnataka: Homebuyers in Karnataka will henceforth have their transactions details sent to the Income Tax Department on purchase of property costing more than Rs 30 lakh, as per new rules issued by the state’s Stamp and Registration Department at the time of registration.

Sub-registrar offices across the state have been told to fill out and submit a Specified Financial Transaction (SSFT) forms, for all property deals above this limit. This step, under Section 285BA(1) of the Income Tax Act, seeks to fill the voids in information and further facilitate transparency with respect to high-value transactions.

According to The Times of India, the department acted after identifying lapses in timely reporting by sub-registrars. “It is necessary to give this information under section 285BA (1) of the Income Tax Act. The Income Tax Department noticed that many sub-registrars were not sending this information on time, which is why this new circular had to be issued,” the report stated.

What Buyers and Sellers Must Now Submit

Under the new system, the following details must be collected and verified during registration:

- PAN card and Aadhaar numbers

- Full addresses and dates of birth of both buyer and seller

- Contact details (mobile number and email)

- Property registration date and transaction details

- Method of payment used

- Form 60, if PAN is not available

These details must be scanned and submitted with the registration documents. Without them, the registration process will be considered incomplete.

No Form, No Documents

Officials have made it clear that the SSFT form is now mandatory. Registration documents will not be released if a party fails to submit them. This information was already being provided by most sub-registrars, but delays and errors caused by workload have resulted in tighter enforcement.

This move by Karnataka Government is supposed to streamline the process and reduce manual errors, some sub-registrars propose allowing buyers and sellers to upload the SSFT form directly to the Kaveri 2.0 portal. In addition to easing staff burdens, this digital option would ensure that data reaches the I-T Department more efficiently.

The regulation is rooted in an existing rule that any property transaction worth Rs 10 lakh or more, or where the stamp duty valuation exceeds Rs 30 lakh, must be reported. The onus of disclosing the transaction lies on Registration Department.