Under the new Registration Bill-2025, OTP-based verification will be mandatory for every property transaction, which will give the Income Tax Department digital information of every small and big purchase. This change is being made to curb benami properties and increase transparency.
How will the new system work?
- Double verification of PAN and Aadhaar: PAN cards of the property buyer and seller will be verified through OTP. Aadhaar number will be verified.
Final Approval: Sub-registrar will give final approval to the transaction through OTP received on his authorized mobile. After verification, the digital copy will be sent directly to the Income Tax Department.
- Income Tax Department monitoring: The AI system will analyze the buyer’s income and assets of the last 5-6 years. If someone buys property worth more than the income, an automatic notice will be issued. This will make it easier to catch suspicious transactions.
UP starts digital initiative, now property registration will be transparent across the country
Uttar Pradesh has already implemented the PAN-Aadhaar verification system. Since last week, the Income Tax Department has been getting digital copies of all the deeds here. After the new law, other states will also have to implement this system.
There will also be a strict watch on property donated or gifted
The new system will also track properties donated or gifted. Investigation has found that in many cases people first buy property in someone else’s name and later transfer it to their name as “donation. This illegal practice will be banned.
Key features of the new bill
Online registration: Facility of digital registration from home, which will eliminate the need for physical documents.
Expansion of mandatory registration: Now registration of documents like sale contract, power of attorney, will and judicial certificate will also be mandatory.
Registrar’s powers increased: The registration officer will get the power to reject the document, which will strengthen the legal process.
