Neutral impactEconomy
Income tax on property buying: Over ₹30 lakh deal? Experts suggest what to report in realty purchases to avoid taxmen
Mint 59 min ago·18 Oct 2026, 7:45 am
The Indian tax authorities are scrutinizing high-value real estate transactions, particularly those involving properties held under a single Permanent Account Number (PAN). While there is technically no legal cap on the number of properties one can own, tax officials are increasingly focused on the source of funds used for these purchases. If a buyer cannot explain where the money came from, the transaction may be flagged for scrutiny.
This development is significant for investors as it highlights the need for meticulous record-keeping. To avoid potential tax disputes, experts advise maintaining a complete paper trail. This includes retaining sale deeds, proof of payments, bank statements, loan documents, and other ownership records. These documents serve as evidence that the transaction was genuine and that the funds were legally obtained.
Moving forward, investors should be prepared to present these records if questioned by tax authorities. The focus is shifting from the number of properties held to the legitimacy of the transactions and the source of the funds. Staying organized and transparent with documentation is now a key part of managing real estate investments in India.
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