Income Tax Dept. Raids Surat Sub-Registrar’s Office

Surat | Gujarat –– In a move that has sent shockwaves through the city’s real estate sector, the Income Tax (I-T) Department has launched a major survey operation at the Sub-Registrar’s office in the Adajan area of Surat. The surprise raid, which began on Tuesday, is part of a wider crackdown on tax evasion and unaccounted transactions in the real estate sector across Gujarat.

The I-T team is meticulously scrutinizing documents related to property transactions valued at over ₹30 lakh. A key focus of the investigation is a suspected “one percent TCS (Tax Collected at Source) deduction theft,” with officials specifically looking for instances where property registrations have been deliberately undervalued, particularly for homes in the Adajan area, to fall below the mandatory Tax Collection at Source (TCS) threshold.

Sources within the department indicate a suspicion that many properties have been registered for less than their government-mandated ‘jantri’ rates to evade taxes.

“This is a direct message to anyone involved in black money transactions,” revealed a source, speaking on the condition of anonymity due to the ongoing nature of the investigation. “We are verifying every high-value transaction, cross-referencing registration details with the actual market value to catch any discrepancies. Our focus is on bringing transparency and financial discipline to a sector that has long been a haven for black money.”

The investigation is a continuation of a new and aggressive strategy by the I-T Department. This is the second such survey in a sub-registrar’s office in Gujarat, following a successful operation in Rajkot’s Zone-5 on July 30, 2025. That first-of-its-kind raid in the state yielded significant results, and officials have similar expectations for the Surat operation.

Under current tax laws, a one percent TCS deduction is applicable on property transactions exceeding ₹50 lakh. While these details are auto-generated and sent to the I-T Department, authorities suspect that many transactions are deliberately split or undervalued to circumvent this rule. The I-T department is now actively pursuing a more direct verification process by physically examining documents at the source.

The survey in Adajan is expected to be a prolonged affair and may extend to other Sub-Registrar’s offices across Surat in the coming days. The city’s bustling real estate market, known for its rapid development and high-value transactions, is now facing a period of intense scrutiny. The action has created a palpable sense of unease among builders, brokers, and investors.

“This is long overdue,” commented a property consultant, who requested not to be named. “For years, a parallel cash economy has thrived, with properties changing hands for values far below the official records. While it may cause some short-term disruption, this move is essential to clean up the system and ensure a fair and transparent market for everyone.”

The I-T Department has not yet released an official statement on the findings. However, the raid serves as a strong warning to those involved in illegal financial activities, signaling a new era of enforcement and accountability in the real estate sector.