Nagpur SROs Fail to Report Real Estate Deals Worth Over Rs5,500 Crore to I-T Department

Nagpur: The Income Tax (I-T) Department has uncovered a significant oversight in the reporting of real estate deals by sub-registrar's offices (SROs) in Nagpur. The value of unreported transactions under the Statement of Financial Transactions (SFT) has crossed Rs5,500 crore, raising serious concerns about the transparency and integrity of the system.

Starting with the SRO at Hingna, the I-T department has extended its probe to four additional SROs covering various areas in Nagpur city. The investigation, initiated by the Intelligence and Criminal Investigation (IC) wing of the I-T department, has revealed a major loophole in the reporting process. It was found that a single SRO alone had failed to report deals worth Rs2,500 crore under the SFT format. When combined with the other SROs, the total unreported amount exceeds Rs5,500 crore.

Sources within the department have stated that all sale deeds for transactions worth Rs30 lakh and above are required to be reported to the I-T department under the SFT format. SROs typically engage chartered accountants (CAs) to compile this information for reporting. However, it appears that the CAs may not have passed on the entire data to the I-T department, although the ultimate responsibility lies with the registrar's office.

The I-T department is now taking steps to ensure that all the missed data is reported under the SFT. This corrective action is crucial as it helps the I-T department maintain parallel information of all transactions. This way, if an individual fails to mention the details in their tax returns, the discrepancy can be identified using the SFT data.

The purpose of the SFT is to provide the I-T department with a comprehensive overview of financial transactions, particularly in the real estate sector. This ensures that any unreported or underreported income can be detected and addressed. The department is also considering taking action against individuals who registered these deals if any discrepancies are found in their tax filings.

The investigation has highlighted the need for stricter oversight and accountability in the reporting process. The I-T department is expected to continue its probe to identify and rectify any further lapses in the system, ensuring that all real estate transactions are accurately reported and taxed.