Overview
The IT Department has introduced a major compliance measure under Rule 237 to track property transactions from the very beginning i.e.,starting with stamp paper purchases.
Now, if you purchase stamp paper more than Rs 1 lakh then it must be reported to the IT Department. Stock Holding Corporation of India Limited, which issues stamp papers across the country is responsible for this reporting under the new provision, Rule 237.
Note
Purchase of stamp papers using cash are not allowed. All payments must be through traceable modes like online banking.
Reporting Threshold
Reporting is triggered when:
- Rs 2 lakh or more per transaction per person with PAN
- Rs 1 lakh or more per transaction per person without PAN
Details Required For Reporting
Whenever a stamp paper is purchased, the following details are shared with the tax authorities:
| Detail | Description |
| Name | Full name of buyer |
| PAN & Aadhaar | Identification numbers |
| Amount | Value of stamp paper purchased |
| Date | Transaction date |
| Location | State of purchase |
| Payment Mode | Online or Banking (cash is heavily flagged) |
Even if intermediaries like brokers or stamp vendors are used, the final issuance through SHCIL ensures the transaction is recorded and reported.
What Has Changed Compared to Earlier?
Earlier, stamp paper purchases were invisible, the tax department could only see:
- Property registration value
- 1% TDS (Tax Deducted at Source)
But now:
- Tracking begins before registration.
- Stamp paper data fills the missing gap.
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited Articles Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
Already a PRO member? Login here for an ad-free experience. 07941056694
CAclubindia
