GURUGRAM: The Income Tax (I-T) department is investigating approximately 2.5 lakh property transactions, worth over Rs 3 lakh crore, in the north-west region of India, according to officials.
Many of these substantial transactions stem from Gurgaon and Faridabad. Revenue offices in these areas have either neglected to report transactions or submitted incomplete or erroneous PAN details, causing significant obstacles in tax verification efforts.
Over the past year, the Directorate of Intelligence and Criminal Investigation (Chandigarh) has conducted over 40 surveys and spot verifications across revenue offices in Punjab, Haryana, Himachal Pradesh, and various Union Territories, including Chandigarh, Jammu & Kashmir, and Ladakh. This included assessments at the Wazirabad tehsil office in Gurgaon and the Ballabhgarh tehsil in Faridabad.
These surveys primarily targeted sub-registrar offices, aligning property transactions with the I-T returns of buyers and sellers. A survey conducted in 2025 at Wazirabad tehsil alone indicated annual tax evasion surpassing Rs 5,000 crore, as PAN details of buyers and sellers were often omitted during registrations.
In 93 tehsils across 22 districts, mandatory PAN details were frequently missing for property transactions exceeding Rs 30 lakh.
The Rs 3 lakh crore figure is the highest detection of its kind in a single region. Nationally, the amount of unreported or inaccurately reported transactions may exceed Rs 7.5 lakh crore, sources indicate.
Before issuing notices, the I-T department adopts a ‘Nudge’ approach—informing taxpayers via email about discrepancies and encouraging voluntary revision of returns. “Action is taken only if there is no response or revision,” explained an I-T official.
While some non-compliance was also noted among cooperative banks and financial institutions, the most significant discrepancies were observed in tehsil offices.
The I-T department is now working with these offices to ensure precise PAN reporting for effective compliance monitoring.
The Haryana government, in January, instructed all deputy commissioners to ensure the immediate submission of outstanding PAN details in property registrations. Tehsildars were tasked with verifying records and promptly resolving backlogs, particularly in Gurgaon and Faridabad.
To curb tax evasion, the I-T department has directed tehsil offices across the state to collect specific financial transaction statements (SSFT) from parties involved in property deals exceeding Rs 30 lakh during the document registration process. The submission of SSFT to the I-T department is mandatory under Section 285BA(1) of the Income Tax Act 1961.
