Patna: The Bihar government has further tightened rules for the registration of high-value properties. For any immovable property transaction worth Rs 10 lakh or more, quoting and verifying the Permanent Account Number (PAN) has now been made mandatory across the state.
The Prohibition, Excise and Registration Department has issued clear instructions to all district sub-registrars and registering officers to ensure that PAN details are compulsorily taken and verified in such cases. The move follows a directive from the Income Tax Directorate (Investigation and Criminal Investigation), Patna, aimed at strengthening compliance with income tax laws and improving transparency in property dealings.
According to officials, the action is being taken in line with Section 139A of the Income Tax Act, 1961, and the Income Tax Rules, 1962. These provisions make it mandatory to furnish PAN for the purchase or sale of property valued above Rs 10 lakh. In cases where PAN is not available, buyers or sellers must submit Form 60. Details of all such non-PAN transactions must then be reported to the Income Tax Department through Form 61.
The department has also directed registration offices to submit half-yearly reports of these transactions. These reports must be filed by October 31 and April 30 every year without fail.
Why PAN is Mandatory in Property Deals
During a recent review, it was found that several registration offices in Bihar had not yet obtained their Income Tax Department Reporting Entity Identification Number (ITDREIN). In addition, many offices were not regularly filing Form 61, despite a large number of non-PAN property transactions being reported in the Rs 10 lakh to Rs 30 lakh range.
Additional Director of Income Tax Rupesh Agrawal has warned that strict accountability will be fixed if registration offices fail to comply with income tax reporting rules. He said every document must clearly record and certify PAN details wherever applicable.
The government said the objective of this step is to curb black money, prevent tax evasion, and bring greater transparency and accountability in real estate transactions in Bihar. The move is expected to strengthen monitoring of high-value property deals and improve coordination between the Registration Department and the Income Tax Department.
