The Uttar Pradesh government has implemented a significant policy shift in the real estate sector by making the Permanent Account Number (PAN) mandatory for all immovable property registrations. This decision aims to bring greater transparency to property dealings and effectively curb benami transactions within the state. According to the official directives issued by the Inspector General of Registration, no property deed will be registered henceforth without the inclusion and verification of the PAN details of the parties involved. This move is expected to streamline the registration process and align it with national financial transparency standards.
Official Directive and Procedural Changes
In a circular issued to all Sub-Registrars across Uttar Pradesh, the Inspector General of Registration has emphasized the strict enforcement of PAN requirements. The order mandates that the PAN must be entered during the online application process for property registration. On top of that, the authorities are required to ensure the digital verification of the PAN before proceeding with the execution of the sale deed. This administrative measure is designed to create a strong digital trail of high-value transactions, ensuring that the financial identities of buyers and sellers are accurately recorded in the government database.
Abolition of Form 60 Option
A major highlight of this new regulation is the complete removal of the Form 60 alternative. Previously, individuals who didn't possess a PAN card were permitted to register property by submitting Form 60, a declaration used under the Income Tax Rules. The state government has now scrapped this provision for property registrations to plug potential loopholes used for tax evasion and unaccounted investments. By making PAN the sole identification criteria for financial transactions in real estate, the government aims to ensure that every major investment is reported to the relevant tax authorities.
Impact on Curbing Fraud and Land Mafia
The mandatory PAN rule is also seen as a strategic move to tackle the menace of the land mafia and fraudulent property dealings, which have been prevalent in regions like Noida, Ghaziabad, and Lucknow. In many instances, multiple registrations were executed for the same piece of land using forged identities. The integration of PAN with the registration process will facilitate real-time identity verification, making it difficult for fraudsters to operate. Government officials believe that this transparency will protect innocent buyers from falling prey to illegal land schemes and will help in maintaining a clean land record system.
Analysis of Financial Transparency
According to financial analysts, this move is a critical step toward formalizing the real estate economy in Uttar Pradesh. Analysts suggest that the mandatory use of PAN will Importantly reduce the flow of unaccounted cash in property deals. By linking property ownership directly to a unique tax identity, the government can better monitor large-scale investments and ensure compliance with anti-money laundering laws. This systemic change is expected to improve the state's revenue collection and provide a more secure environment for institutional investors who prioritize legal clarity and documented transactions.
Implementation Outlook
The enforcement of the PAN mandate marks a new era of accountability in Uttar Pradesh's property market. While the transition may require citizens to ensure their tax documentation is up to date, the long-term benefits include a reduction in litigation and a more transparent marketplace, while the state government’s focus on digital verification and the removal of older, less secure declaration forms reflects a commitment to modernizing administrative processes. As the new rules take effect, the registration department is expected to witness a more organized and verifiable flow of property transactions across the state.