Land(ing) in trouble: ₹8,500 cr property deals under taxman's scanner

The Income-Tax Department is scrutinising property and land transactions worth around ₹8,500 crore, raising concerns over unreported transactions, undervaluation and suspected benami ownership. The transactions include bulk land purchases, agricultural land, farmhouses and other high-value properties.

Around ₹2,000 crore of the identified transactions are suspected to involve benami arrangements, according to the report. Officials are checking whether the person shown as the property owner is also the person who actually funded the transaction and benefits from it.

The department is also comparing PAN details, property transaction values and income-tax returns to identify possible mismatches. Cases involving property values being underreported or cash components not disclosed are also reportedly under examination.

For property buyers and investors, the development is a reminder of why proper documentation and transparent financial transactions matter when purchasing real estate. Keeping accurate records of payments, ownership and the source of funds can help avoid future complications.

The move also highlights the increasing use of data-driven tax monitoring in India's real estate sector.

Source: Economic Times