Bihar Switch to Hindi
Unreported Cash Property Deals Flagged in Bihar and UP
Why in News?
The income tax department has focused on cash transactions exceeding Rs 2 lakh in property deals, uncovering violations in Bihar and Uttar Pradesh, particularly in districts bordering Nepal, where sub-registrars have failed to share data.
Key Points
- About: A nationwide exercise, initiated following the Supreme Court's April 2025 directions, uncovered multiple instances of entire property transactions being conducted in cash, highlighting concerns over transparency and compliance.
- The department has intensified its efforts to track black money and crack down on cash transactions in high-value deals by collecting and analyzing vast amounts of data.
- Misreporting of Data: Sub-registrars in Bihar and UP have been found misreporting property transaction data, prompting the tax department to raise concerns and instruct officials to ensure proper data sharing and compliance with registration processes.
- Scale of Problem in Bihar: Spot verifications in districts like Kishanganj, Sitamarhi, Araria, and Madhubani in Bihar revealed:
- Around 250-300 instances of cash transactions over Rs 2 lakh not being reported.
- Failure to report transactions exceeding Rs 30 lakh as mandated by law.
- In a single sub-registrar office, over 600 property transactions worth Rs 250 crore were not reported over three years.
- PAN details for transactions were not captured or shared.
- Scale of Problem in UP: While the problem is less severe in UP, issues were found in districts like Maharajganj and Pilibhit.
- There were defective entries in several property deals, and cash transactions exceeding Rs 2 lakh were still prevalent, though on a smaller scale compared to Bihar.