Income Tax Dept Proposes Raising Property Transaction Reporting Limits from April 1

Draft rules issued by the Income Tax Department outline procedural changes for the I-T Act, 2025, including a higher reporting threshold for certain property transactions. 

Proposed Change in SFT Reporting Threshold 

As per Draft Rule 237, the threshold for reporting property transactions under the Statement of Financial Transaction framework is proposed to be increased to ₹45 lakh from ₹30 lakh. The change will apply to the purchase, sale, gift or joint development of immovable property from April 1, when the new financial year begins. 

The value considered for reporting will be either the transaction amount or the stamp duty value, whichever is ₹45 lakh or higher.  

The reporting obligation will continue to rest with registrars, sub-registrars or the Inspector-General of Registration, and not with buyers or sellers. Details must be submitted annually in Form No 165 and reflected in the Annual Information Statement. 

Expert Views on Compliance Impact 

The draft rules aim to simplify tax filing and improve compliance as part of the transition to the restructured income-tax law. Taxpayers, professionals and industry stakeholders have time until February 22 to submit feedback on the proposed rules and forms. 

Read More: CBDT Invites Stakeholder Inputs on Draft Income-tax Rules Ahead of April 2026 Rollout! 

Conclusion 

Feedback on the draft rules can be submitted until February 22, after which the revised framework will guide implementation of the I-T Act, 2025, from April 1, including the higher ₹45 lakh property reporting threshold. 

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