Lucknow, Oct 16 The Income Tax Department has issued notices seeking compliance over 9,141 erroneous financial transactions involving Rs 5,121.76 crore in eastern Uttar Pradesh, highlighting the need for greater awareness and improved reporting by institutions, officials here said on Friday.
The department’s Intelligence and Criminal Investigation wing shared the figures for the 2025-26 financial year, indicating that compliance challenges were more pronounced in smaller towns and districts, while reporting was comparatively better in larger cities such as Lucknow.
“During 46 spot verifications conducted last year, we detected 4,311 unreported transactions involving Rs 2,747.5 crore. Of these, 1,714 transactions worth Rs 1,160.75 crore were subsequently reported, leaving 2,597 transactions involving Rs 1,586.75 crore unreported,” it said in a statement.
Similarly, 26,628 erroneous transactions worth Rs 14,414.82 crore were detected, of which 17,487 transactions involving Rs 9,293.06 crore were corrected through amendments.
“Notices have been issued in connection with the remaining 9,141 transactions worth Rs 5,121.76 crore, and further proceedings and corrections are underway,” it said.
The department’s I&CI wing is focusing on timely filing of Statements of Financial Transactions (SFT), statutory reports through which specified entities, including banks and other institutions, disclose prescribed financial transactions to the tax department.
Officials clarified that penalties for SFT non-compliance are imposed on reporting institutions, which may include government bodies and companies, rather than individuals.
For property transactions, the reporting threshold was Rs 30 lakh until the previous financial year and was raised to Rs 45 lakh from the current financial year. The notices concerning earlier transactions relate to the previous Rs 30-lakh threshold, officials said.
The department stressed the need for further awareness, strengthening reporting compliance and widening the tax base.
(PTI News)
