200 sub-registrars get notices for aiding tax evasion

Bengaluru: If you haven’t declared your PAN details while registering your property, income-tax sleuths could soon be knocking on your door.

At a recent meeting with all sub-registrars of the state, the income-tax department found that Permanent Account Numbers were not provided in 70%-80% of property transactions though it is mandatory. The department has directed sub-registrars to mandatorily collect PAN details during property registrations.

As a first step to ensure compliance, the intelligence and criminal investigation wing of the I-T department has issued show-cause notices to over 200 sub-registrars for aiding tax evasion in the Karnataka-Goa region as they didn’t collect PAN information during property transactions.

“As part of our searches pertaining to high-value financial transactions, we collect data on such transactions from many government authorities, including sub-registrars. In case of property purchase or sale, if the value is above Rs 30 lakh, PAN is mandatory. But we found that 70%- 80% cases are without PAN,” Nutan Wodeyar, principal chief commissioner of income-tax (Karnataka & Goa) told TOI.

“We have also collected a penalty from sub-registrars for not collecting PAN during property transaction. It costs them Rs 500 per day till they ensure the PAN is registered,” she added.

She added that they have found cases of the same person making multiple property transactions without producing a PAN. “We consider these high-risk cases and will look into how the person got money for the purchase or where he has invested the money got from the sale. We’re also doing an awareness drive to tell people it’s mandatory to produce their PAN during property transactions. People failing to do so despite notices being issued will face prosecution as well,” she added.

Officials with the intelligence & criminal investigation wing of the I-T department said as part of looking into purchaser detail of immovable property transactions, sources of purchase out of declared income or not, returnable income filed or not, any loans raised and creditworthiness are being looked into. When it comes to the seller, information on capital gains, status of land on date of transaction and claim of deduction within specified time, among other things, will be looked into.

“Small traders will also come under scrutiny. We’ll take the help of various government departments to get information. They can no longer hide. Our internal intelligence team will monitor those evading and even those who help them evade,” the officials said.

Manoj Kumar Meena, inspector-general, registration and commissioner of stamps, said they interacted with the income-tax department recently and norms are being followed. “Sub-registrars across the state have been directed to comply by mandatory PAN and other requirements during property transactions,” he added.

Property registrations in state

Financial year -- Property documents generated (lakhs) - Revenue collection (crores)

2010-11 -- 12.02 -- 3795.26

2011-12 -- 6.49 -- 4971.536

2012-13 -- 19.40 -- 5265.44

2013-14 -- 16.74 -- 6226.22

Source: Department of stamps and registration, Karnataka

Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, Location Guesser and Mini Crossword.