# Investing in property? Avoid tax notices with correct PAN and funds

> How to avoid income tax notices when buying property with correct PAN and funds.
- Title: Investing in property? Avoid tax notices with correct PAN and…
- Summary: How to avoid income tax notices when buying property with correct PAN and funds. Property buyers must retain proof of funds, sale deeds, and transaction…
- Keywords: property, pan, tax notice, source of funds, income tax, sale deed, transaction records, stamp duty, tds, immovable property, news, india
- Source: mint — https://livemint.com/money/investing-in-property-documentation-correct-pan-source-of-funds-how-to-ensure-you-avoid-any-tax-notice-for-property-11792743276604.html
- Author: Jocelyn Fernandes
- Published: 2026-10-23T08:57:40+00:00
- Read time: 1 min
- Topics: property, pan, tax notice, source of funds, income tax, sale deed, transaction records, stamp duty, tds, immovable property, news, india
## Property registrations on a single PAN
Legal experts confirm income-tax laws set no numerical limit on properties a person can own under one PAN.
## Threshold to report property transactions
Purchasers must report transactions exceeding ₹ 30 lakh via SFT or ₹ 50 lakh with TDS deduction.
## SFT reporting requirements
For immovable property transactions over ₹ 45 lakh, registration authorities must report to income tax.
## TDS deduction rules
Buyers must deduct 1% TDS on immovable property purchases exceeding ₹ 50 lakh.
## Documentation checklist
Retain registered sale deed, stamp duty records, source of funds evidence, payment proof, and bank statements.
## Why tax notices occur
Tax authorities may issue notices if source of funds is unclear, PAN details are wrong, or TDS is not deducted.
## Consequences of unexplained funds
Unexplained property purchases can lead to severe tax penalties and income tax liabilities.
## Action steps for buyers
File reply within stipulated time with supporting documents if tax notice is received.
## Key documentation for property
Ensure correct PAN and identity details in sale deed, use traceable banking channels, and comply with TDS rules.
## Key takeaway

Property buyers must retain proof of funds, sale deeds, and transaction records to prevent tax notices from income tax authorities.