When your immovable property transactions can be reported to the tax dept under draft rules 2026

The draft Income-tax Rules 2026 propose that any purchase, sale, gift, or joint development agreement of an immovable property must be reported by the registrar/sub-registrar or the Inspector-General to the Income-tax Department if the amount involved is ₹45 lakh or more.

Such transactions are proposed be reported to the tax department as part of the Statement of Financial Transaction (SFT) by the Inspector-General appointed under section 3 of the Registration Act, 1908, or Registrar or Sub-Registrar appointed under section 6 of this Act.

The SFT helps the income-tax department in keeping an eye on certain high-value transactions.

This means that if the proposed draft rules are implemented, then the sale, purchase, or gifting of an immovable property valued at less than ₹45 lakh will not be reported by the concerned authorities as part of the SFT to the Income-tax Department.

Under the Income-tax laws, immovable property includes land, buildings, or any part of a building, or flats, including any rights associated with them.

What is new?

The proposed ₹45 lakh limit is a significant hike from the existing rules that mandate reporting of any property deals worth ₹30 lakh or above.

The existing rules mandate reporting of "Purchase or sale by any person of immovable property for an amount of ₹30 lakh or more or valued by the stamp valuation authority referred to in section 50C of the Act at ₹30 lakh or more."

Moreover, the new draft rules have expanded the scope of such reporting by including the gifting of immovable property and joint development agreements.

The reporting limit has also been increased to ₹45 lakh as mentioned above.

What the draft Income-tax Rules 2026 say

Under Rule 237, the draft Income-tax Rules propose the following for reporting of property sale and purchase:

• Amount of ₹45 lakh or more; or,

• Stamp Duty Value ₹45 lakh or more.

Please note that the draft rules are currently open for public feedback. They may see some changes before final implementation with effect from April 1, 2026.