Why Your Bengaluru Flat Purchase Shows Up in Your Tax Records: SFT-012 and AIS Explained

Months after you register a flat, a line about it can quietly appear in your income tax records, placed there not by you but by the sub registrar who registered the deal. Many buyers are startled to see their purchase listed in their tax statement and assume something has gone wrong. Nothing has, this is the system working as designed. The quick facts: under the statement of financial transactions framework, the code SFT-012 covers the purchase or sale of immovable property valued at Rs 30 lakh or more, the registrar or sub registrar reports such transactions to the income tax department, and the information then surfaces in your Annual Information Statement and Form 26AS, tagged to your PAN.

The short answer. When you buy a Bengaluru property worth Rs 30 lakh or more, the registrar reports it to the income tax department under SFT-012, and it appears in your Annual Information Statement and Form 26AS automatically. The trade-off this transparency creates is simple and fair: the purchase is visible to the tax department, so the funds behind it should be explainable, and the buyer's real task is not to fear the entry but to verify it is accurate and to keep the records that show where the money came from.

What exactly is SFT-012?

SFT-012 is one of the reporting codes in the income tax department's statement of financial transactions system, the mechanism by which banks, registrars and other institutions report high value dealings. As explained by tax references including TaxGuru and ClearTax, SFT-012 specifically covers the purchase or sale by any person of immovable property for Rs 30 lakh or more, or valued by the stamp valuation authority at Rs 30 lakh or more. The duty to report sits with the Inspector General, the registrar or the sub registrar who registers the document. They transmit the transaction details, including the PAN and value, to the department. The result is that property dealings above the threshold are captured at the point of registration and routed into the tax system without the buyer or seller doing anything extra.

Why does the purchase appear in your AIS and Form 26AS?

Because both documents are designed to give the department, and you, a consolidated view of your financial footprint. The Annual Information Statement and Form 26AS aggregate the SFT reports filed against your PAN, so a property purchase reported under SFT-012 shows up there alongside other high value items. This is not an accusation, it is a record. For a buyer, the value is that you can see exactly what the department sees, which lets you confirm the entry is correct before you file your return. PropNewz has covered the companion obligation on the payment side, the 1 percent TDS and Form 26QB filing a buyer does directly, in our June 12 guide, and the SFT entry is the registrar's parallel report that sits beside it.

How does SFT-012 fit with the other property tax touchpoints?

The table below places SFT-012 among the reporting and deduction points a property purchase triggers, so a buyer sees the full picture.

The comparative insight: SFT-012 is the only one of these that happens automatically, without the buyer lifting a finger, which is precisely why buyers are surprised by it and why checking it matters.

Does an SFT entry mean you will face questions?

Not by itself, and buyers should not panic at seeing the line. An SFT-012 entry is routine and applies to every qualifying purchase, so its mere presence signals nothing wrong. What the department does with such data is match it against declared income to spot mismatches, so the entry only becomes a question if a high value purchase sits against income or disclosed funds that cannot support it. The honest framing is that the entry is a prompt to be ready, not a problem in itself: a salaried buyer who funded a flat with savings, a home loan and a parental gift has nothing to fear, provided those sources are documented. The risk lies only with unexplained money, which is exactly the behaviour the reporting system is designed to surface.

What should a buyer actually do about it?

Check, confirm and keep records, in that order. Before filing your income tax return for the year of purchase, open your Annual Information Statement and Form 26AS, locate the SFT-012 property entry, and confirm the value, the property and your ownership share are stated correctly. Errors do happen, a transaction can be misattributed, duplicated, or shown at the wrong value or against the wrong co owner, and the AIS provides a feedback facility to flag and correct such entries rather than leave them to cause confusion later. Beyond accuracy, retain the documentation of your funding sources, bank statements, the loan sanction, any gift deed, the proceeds of an earlier sale, so that if the source of funds is ever asked, the answer is a folder rather than a scramble. The seven point checklist below covers it.

1. Expect any property purchase of Rs 30 lakh or more to appear in your AIS and Form 26AS under SFT-012.
2. Open both statements before filing your return for the year of purchase and find the property entry.
3. Confirm the value, property identity and your ownership share are recorded correctly in the entry.
4. Use the AIS feedback facility to flag any entry that is wrong, duplicated or not yours.
5. Keep documentation of every funding source used, savings, loan, gift and prior sale proceeds.
6. Ensure the purchase is consistent with the income and funds you have disclosed over the years.
7. Reconcile the SFT entry with your own TDS filings, such as Form 26QB, so the records agree.

Frequently asked questions

What is SFT-012 in property transactions?

SFT-012 is the statement of financial transactions code under which the registrar or sub registrar reports any purchase or sale of immovable property valued at Rs 30 lakh or more, by actual price or stamp valuation, to the income tax department, after which it appears in the buyer and seller records.

Why does my flat purchase show in my AIS and Form 26AS?

Your purchase appears because the registrar reports it under SFT-012, and the Annual Information Statement and Form 26AS aggregate such reports against your PAN. They give both you and the department a consolidated view of your high value transactions.

Does an SFT entry mean I will be questioned?

Not by itself. The entry is routine for every qualifying purchase. It only invites questions if a high value purchase sits against income or funds that cannot support it, so keeping records of your savings, loans, gifts and sale proceeds is the practical protection.

Should I check my AIS before filing after buying a flat?

Yes. Check the Annual Information Statement and Form 26AS, confirm the property entry is correct and belongs to you, and ensure the value and your share match. If an entry is wrong or duplicated, use the AIS feedback facility to correct it.

Last updated 2026-06-13. PropNewz Team.