AIS Record for Purchase of Immovable Property

[Shrey Shah]

Hi, I purchased a flat for example for an amount of Rs. 1 cr. The flat is jointly owned by me and my father. My father has no income and I am funding for the flat completely.

Now, as for TDS, I've paid 50% TDS from my Income Tax Portal and 50% TDS from my father's Income Tax Portal (each one's share is 50%).

Under SFT Information in both our AIS, it shows the record of 'Purchase of Immovable Property'.

Now, under the SFT Information, for Purchase of Immovable Property record, there are 3 columns 'Transaction Amount, No. of Parties, Transaction Amount Assigned'. Now, in both our AIS, the entries for those columns are:

- Transaction Amount: 1 cr

- No. of Parties: 2

- Transaction Amount Assigned: 1 cr

==> Questions:

1) For the Transaction Amount Assigned, shouldn't it be 50 lakhs in each of our AIS instead of the complete amount of 1 cr?

2) My father received an email asking for AIS Feedback on that High Value transaction. Should I simply select 'Information is correct' from the dropdown? Now that it is reported by the government as 1 cr for both, should I leave it as is and not take any action?

Please help out here.

[CA.Mohammed Lakkadsha]

The Transaction expressed as documneted and explained clearly shows that 50% property has been acquired by your Father. The funds are sourced from you which can be shown as Loan or Gift. As regards the reporting in AIS, the SFT reporting entity (SRO)has wrongly assigned the amount, hence it is recommended that you should report the same at Insight portal which will be confirmed from the reporting entity and ask to rectify there SFT Statement.

[Ryan Vaz]

Applicable Law / Reporting Framework

• Section 194-IA, Income-tax Act, 1961 – TDS on purchase of immovable property

• Rule 114E, Income-tax Rules, 1962 – Statement of Financial Transactions (SFT)

• CBDT AIS Guidelines & FAQs – Treatment of high-value transactions in AIS

(Information originates from Registrar/Sub-Registrar reporting through SFT, not from the buyer’s computation.)

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Short Practical Answer

Q1. Should “Transaction Amount Assigned” be Rs. 50 lakh instead of ?1 crore?

No correction is required. AIS showing Rs. 1 crore for each joint purchaser is normal and technically correct under SFT reporting.

Q2. What AIS feedback should your father give?

He should safely select “Information is correct”. No adverse tax impact arises merely because AIS reflects the full value.

AI Summary

Purchase of immovable property may appear at full value for each joint buyer in AIS; seek SFT correction from the reporting entity. AIS entries under the SFT regime may show the full transaction amount against each joint purchaser because the reporting entity reports the documented transaction value and number of parties, not the buyers' internal apportionment; corrections to the reported amounts must be sought from the reporting entity via the AIS/insight portal while allocation of funding should be evidenced separately for tax purposes under Section 194-IA and Rule 114E.