The Income Tax Department has started sending targeted reminders and notices for non-reporting or under-reporting of RERA-declared transactions in income tax returns. These are not random communications—they are backed by powerful data integration under Sections 285BA, 139, 143(1), and 133C of the Income Tax Act, 1961, and are aimed at ensuring complete disclosure of property transactions by taxpayers.
If you’ve received a message or email referencing a mismatch or non-filing despite your details being available from RERA authorities, this blog post will guide you through what it means, what triggered it, and what to do next.
Why Are These Reminders Being Sent?
The reminders stem from the Annual Information Statement (AIS) and Statement of Financial Transactions (SFT) which are now populated with RERA-verified details of property buyers, sellers, and developers. These are sourced directly from State RERA portals, where registration of real estate projects and transactions is mandatory under the Real Estate (Regulation and Development) Act, 2016.
Common triggers for the reminders:
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You purchased or sold a property in a RERA-registered project.
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Your name was furnished in the project-wise PAN-linked return by the builder or promoter to the RERA authority.
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The AIS/TIS shows high-value transactions, but your ITR does not reflect corresponding income or investment.
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You filed an ITR, but did not declare property-related capital gains, purchase costs, or loan details.
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You have not filed the return despite a RERA record showing a real estate transaction in your name.
Legal Backdrop: What Makes This Mandatory?
The data sharing between RERA authorities and the Income Tax Department is backed by:
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Section 285BA of the Income Tax Act: Requires specified persons (including developers and registering authorities) to report high-value transactions.
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Rule 114E & Form 61A: Mandate SFT filing of property transactions above ₹30 lakh and other specified thresholds.
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Section 143(1)(a)(iv): Allows for adjustments for mismatch between ITR and data in the AIS.
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Section 133C: Enables the department to issue e-verification notices if a mismatch is found.
These provisions are being actively enforced from AY 2025–26 onwards, and any omission may be interpreted as misreporting or concealment, inviting serious consequences.
What Are the Risks of Ignoring or Misreporting?
If the RERA-linked transactions are omitted or misreported in your return:
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Section 270A Penalty:
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50% of tax on under-reported income (if it’s due to incorrect filing).
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200% of tax if considered misreporting, such as suppression of property income/gains.
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Scrutiny Selection Risk:
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Returns with property mismatches have high probability of scrutiny under Computer Aided Scrutiny Selection (CASS).
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Delayed Refunds:
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Refunds may be withheld if AIS/ITR mismatches remain unresolved.
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Best Judgment Assessments (Section 144):
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In case of non-response, the department may proceed to assess income using available third-party information, leading to higher tax liability and penalties.
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What Should Taxpayers Do?
Here’s a checklist to avoid tax trouble:
| Step | Action Item |
|---|---|
| 1️⃣ | Check AIS & TIS: Log into https://www.incometax.gov.in and verify details under RERA-linked SFT section. |
| 2️⃣ | Review your sale/purchase records: Match them with what has been declared to RERA by the builder. |
| 3️⃣ | Recompute your income/capital gains: If you missed declaring any real estate transaction, revise your ITR under Section 139(5). |
| 4️⃣ | File ITR if not filed: Even if you believe tax is not payable, reporting obligations exist once you are covered by RERA-SFT. |
| 5️⃣ | Avoid artificial deductions: Do not claim unjustified exemptions or false cost escalations to reduce taxable capital gains. |
| 6️⃣ | Respond to e-verification notices promptly: Ignoring them may escalate the matter to full-scale scrutiny. |
Key Insight: This Is Not Just About Real Estate
This initiative shows the Income Tax Department’s growing reliance on cross-verified, third-party data (like RERA, registrar, banks, TDS reports, and even electricity/water departments) to ensure full-spectrum taxpayer compliance.
RERA records are only one part of a broader transparency push. In future years, similar integration is expected with:
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Electricity consumption records
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Property registries (circle rate undervaluation checks)
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PAN-linked loan databases
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GST builder filings
Final Takeaway
If you’ve received a RERA-related income tax reminder, it’s a red flag—not of wrongdoing necessarily, but of data discrepancy. Take it seriously, verify your AIS and ITR, and act promptly to file or revise your return.
This is your opportunity to correct before consequences follow. Remember, non-disclosure is no longer hidden—your name is already in the system.
