The Government of India, in coordination with the Income Tax Department and state land registration authorities, has mandated the inclusion of the Permanent Account Number (PAN) in all property registration transactions to strengthen tracking of capital gains and curb tax evasion in the real estate sector. This move marks a significant step in ensuring transparency and consistency between reported income and actual high-value transactions.

As per the revised norms, buyers and sellers involved in the sale or purchase of immovable property valued at ₹10 lakh or more must compulsorily provide their PAN at the time of registration. Registrars will now upload PAN-linked transaction details to a centralized government database, enabling the Income Tax Department to monitor property transfers, detect discrepancies, and match them with capital gains declarations in the taxpayer’s income return. This will help in ensuring that appropriate taxes are paid on gains arising from property sales under Section 45 of the Income Tax Act.

Additionally, PAN will be linked to property records in municipal and revenue databases, allowing for more efficient profiling of taxpayers, identification of benami transactions, and valuation mismatches. Failure to furnish PAN during registration may result in penalties, delayed documentation, or refusal of registry approval in some jurisdictions. Taxpayers are advised to maintain proper records of sale deeds, cost of acquisition, improvement expenses, and related documents to accurately compute capital gains and comply with income reporting requirements. This initiative reinforces the government’s commitment to creating a digitally traceable and tax-compliant real estate ecosystem.