33 sub-registrars yet to report high-value transactions
Credit: DH photo
Bengaluru: Despite repeated notices and warnings from the income tax department, at least 32 sub-registrars in the state have not reported high value transactions of immovable properties.
These include sub-registrars of Byatarayanapura, Banashankari, Gandhinagar, Yelahanka, Basavanagudi and BDA in Bengaluru jurisdiction. Following this, the income tax department has written to Karnataka’s Chief Secretary.
The copy of the communication accessed by DH reads, “This letter is to bring to your kind notice the continued non-compliance of the statutory requirement of reporting high value transactions in immovable properties by some sub-registrars, which has wider ramifications in terms of collection of tax due to the Central government and for extending timely taxpayer services.”
The I-T department states that sub-registrars are mandated to furnish a statement of financial transactions (SFT) on immovable properties exceeding Rs 30 lakh to the income tax department.
“This requirement is aimed at promoting non-intrusive tax administration and voluntary compliance by taxpayers and to achieve the twin goals of widening and deepening the tax base. As on date, 33 sub-registrars have not filed the SFT for the reporting period 2024-25,” the letter stated.
The prescribed deadline was May 31, 2025, the I-T department stated.
The letter further reads, “So far, the number of reports filed for the period 2024-25 are less than the reports filed for the reporting period 2023-24. The information submitted by sub-registrars is processed by the department and incorporated in the Annual Information Statement (AIS) of the taxpayer concerned. The information contained in the AIS is verified by the taxpayer, and in case of any discrepancy, there is a provision to raise a dispute. Further, the information available in the AIS nudges the taxpayer to make full disclosure of transaction(s) in the income tax return.”
However the information received through SFT is also critical for the department to identify cases of undervaluation of properties and for bringing them into the tax net. Failure to furnish the statement within the prescribed time puts taxpayers into great inconvenience and the government loses revenue, says the department.
“Despite best efforts, the continued non-compliance is a matter of grave concern. It is not clear what is preventing these SROs from filing statements when information is available in the Kaveri portal,” the letter said.
According to information available, the I-T directorate has been writing to Karnataka’s Department of Stamps and Registration on this repeatedly and also about the ways and means to streamline the filing of timely and error-free SFTs by bringing in suitable changes in the Kaveri 2.0 portal.
Mullai Muhilan M P, Inspector General of Registration and Commissioner of Stamps said, “We are validating the online portal for this and are in talks with officials about some technical issues regarding I-T department parameters.”