I-T draft rules propose higher reporting threshold for property deals from April. Here’s what it means for you

The value considered can be either the actual transaction amount or the stamp duty value, whichever is Rs 45 lakh or higher

• Draft Income-tax Rules, 2026 released for feedback until February 22, 2026
• Property SFT reporting threshold raised from Rs 30 lakh to Rs 45 lakh
• Registrars must report high-value property transactions, not buyers or sellers.

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The income tax department has come out with draft rules and sample forms, providing the first procedural blueprint for the I-T Act, 2025, which comes into effect from the new financial year that begins of April 1.

The draft includes updates designed to make tax filing simpler and improve compliance.

Taxpayers, professionals, and industry have until February 22 to give their feedback. This step is a key transition, as these rules and forms will shape the implementation of the restructured income-tax law.

According to the Draft Rule 237, there is a higher threshold for property Statement of Financial Transaction (SFT) reporting. It means the reporting requirement for purchase/sale/gift/joint development of immovable property is proposed to be increased from Rs 30 lakh to Rs 45 lakh.

Sumit Singhania, Partner, Deloitte India, said, "The new set of rules seeks to rationalise SFT filing requirements for enhancing the threshold limits. This can be a huge relief for a big chunk of taxpayers falling at the fringes of the existing threshold, and also proportionately eases the administrative burden from the Revenue standpoint. Inclusion of stamp duty purchase category in SFT filings is another effort to digitise high-value transaction trail."

"The upward revision of transaction thresholds for the purposes of quoting PAN and financial reporting represents a calibrated and risk-based refinement of the reporting framework. By increasing the thresholds, the measure appropriately narrows the reporting universe to transactions of greater materiality, thereby reducing low-value data capture and associated compliance costs," said Sandeepp Jhunjhunwala, Partner, Nangia Global Advisors.

A statement of financial transaction (SFT) is a reporting framework used to monitor high-value transactions and deter tax evasion. Designated entities such as sub registrars, banks, mutual funds and companies are required to report specified transactions, which then appear in a taxpayer’s annual information statement (AIS), promoting transparency and helping ensure accurate return filing.

This rule means that high-value property transactions must be reported to the income tax department. If a person buys, sells, gifts, or enters into a joint development agreement for a property worth Rs 45 lakh or more in a financial year, the details of that transaction have to be shared with the tax authorities.

The value considered can be either the actual transaction amount or the stamp duty value, whichever is Rs 45 lakh or higher.

This information is not filed by the buyer or seller but by the registrar, sub-registrar or inspector-feneral of registration, who records the property transaction.

The details are to be submitted annually in the prescribed format, Form No 165, in accordance with the verification rules laid down by law.

"This rationalisation is expected to enhance the quality and usability of reported information, improve administrative efficiency for reporting entities, and support more targeted and effective tax risk assessment by the authorities,” said Jhunjhunwala .