Buying Property Over ₹30L? 5 Docs You Must Keep

If you buy or sell property worth over ₹30 lakh, the income tax department can ask where the money came from. Experts say keeping the right documents — sale deeds, bank statements, loan papers — is your best protection against a tax notice.

Here's what happened: Property transactions above ₹30 lakh are automatically reported to the income tax department by registrars under the Annual Information Statement (AIS) system.. Tax experts confirm there is no restriction on the number of properties one PAN can hold, but every deal must have a fully explainable and documented source of funds.. Buyers and sellers are advised to maintain sale deeds, bank statements, loan documents, and payment receipts to prove legitimacy if the IT department raises a query..

What you should do: Collect and file your registered sale deed, NEFT/RTGS payment receipts, and home loan disbursal statement in one folder the day your deal closes.. Check your Annual Information Statement (AIS) on the IT portal at incometax.gov.in — confirm your property purchase is accurately reflected and matches your ITR.. Avoid any cash component in a property deal exceeding ₹20,000; route all payments through bank transfer to build a clean, traceable money trail..

Your AIS is updated within weeks of registration — file or revise your ITR to reflect the property purchase before a mismatch triggers an automated tax notice.