Income Tax Department Survey Finds Discrepancies in Nearly 25,000 Properties Worth ₹55,000 Crore

An Income Tax Department survey last week found discrepancies in records of nearly 25,000 properties worth around ₹55,000 crore, including the alleged use of the same PAN number in multiple registrations over two years. Mint reported that high-value property transactions in Gurugram's Badshahpur tehsil are now under scrutiny.

The Badshahpur Survey and the Seven-Member Team

The Income Tax Department, Chandigarh, has constituted a seven-member team to probe records in Gurugram's Badshahpur tehsil, according to Mint, which cited PTI and an official. The survey covered records spanning two years and flagged the alleged use of a single PAN number across multiple registrations.

Amit Ganatra, Executive Director at Khaitan & Co, said there is no specific numerical limit under the Indian Income tax Act or Rules on how many properties a person can buy or register using the same PAN. "Any person can purchase multiple residential, commercial, or other properties under his PAN provided source of funds is legitimate and genuine and all the applicable rules are complied," he said. Ganatra added that irrespective of the number of properties held, an individual can show only two properties as self-occupied, and the balance would be treated as deemed to be let out for income tax purposes.

Dinkar Sharma, Company Secretary and Partner at Jotwani Associates, said a PAN is a unique tax identification number that links property transactions with a person's income-tax returns and other financial information. He said the total number of property transactions made through a particular PAN cannot be said to be indicative of tax evasion, and that the actual point is whether the transaction was genuine, the names of the seller and buyer were recorded correctly, and the source of the amount spent could be explained.

Reporting Thresholds Buyers Should Know

Sharma cited Statement of Financial Transactions reporting requirements, under which a purchaser or vendor of immovable property should get the transaction reported by the concerned registration authority when the value of the transaction or the stamp duty value is ₹30 lakh or more. He said it is the duty of the registration authority to report such a transaction, and that this does not imply the person purchasing the property needs to get his own report made. Sharma added that the buyer normally has to deduct TDS at 1% if the value of sale consideration or stamp duty value is ₹50 lakh or more.

Ganatra provided a checklist under the new I-T Rules applicable for FY 2026-27 onwards: PAN is required for purchase, gift, sale or joint development agreement in respect of immovable property exceeding ₹20 lakh; SFT reporting by the Registrar or Sub-Registrar applies above ₹45 lakh; TDS on purchase applies above ₹50 lakh; and immovable property must be reported in Schedule AL of the ITR where total income of an individual exceeds ₹1 crore. "Failure to quote PAN, report transactions or non-deduction of TDS entails monetary penalty and interest exposure," he said.

What the Income Tax Department Has Been Doing

According to akta.pro company records, the Income-tax Act, 2025 received presidential assent in 2025 and will replace the six-decade-old Income-tax Act, 1961 effective April 1, 2026. The same records show the department launched a second NUDGE initiative in 2022 to strengthen voluntary compliance for foreign asset reporting, alongside the introduction of Virtual Digital Asset taxation in 2022 and online gaming TDS in 2024.

Earlier Income Tax Department Actions

The Income Tax Department in Thoothukudi held an outreach programme for jewellery traders on October 13, 2026, covering key provisions of the Income-tax Act, 2025, The Hindu reported. On September 28, 2026, the department searched 12 Mumbai locations linked to Rakul Preet Singh, Vashu Bhagnani and Panorama Studios over suspected overseas fund transfers, The Times of India reported. The same day, Business News Today reported the department is offering a one-time compliance window under FAST-DS, open until December 31, 2026, for taxpayers to check their Annual Information Statement for unreported overseas financial interests.

What Buyers Should Do Next

Ganatra advised that, as a matter of abundant precaution, an individual should maintain sufficient documentation for every immovable property transaction, including the registered sale deed, stamp duty records, evidence regarding source of payment, payment evidence, bank statements, the buyer's PAN, proof of ownership of the property by the seller, reconciliation of income tax records and loan documents.