I-T Department Issues Notices Over 9,141 Transactions Worth ₹5,122 Crore in Uttar Pradesh

The Income Tax Department has intensified its efforts to improve financial reporting and tax compliance, issuing notices over 9,141 erroneous transactions involving ₹5,121.76 crore in eastern Uttar Pradesh. The action highlights continuing gaps in transaction reporting and the department’s growing focus on identifying discrepancies through data-driven monitoring and stronger enforcement.

According to the Press Trust of India (PTI) report published on October 16, the department’s Intelligence and Criminal Investigation (I&CI) wing identified 26,628 erroneous transactions worth ₹14,414.82 crore during the 2025–26 financial year. Of these, 17,487 transactions involving ₹9,293.06 crore were corrected through amendments, while notices were issued over the remaining 9,141 transactions. Officials said compliance challenges were more pronounced in smaller districts than in larger cities such as Lucknow.

During 46 spot verifications, officials detected 4,311 unreported transactions worth ₹2,747.5 crore. Subsequently, 1,714 transactions involving ₹1,160.75 crore were reported, leaving 2,597 transactions worth ₹1,586.75 crore unreported.

The department is focusing on timely filing of Statements of Financial Transactions (SFT), statutory disclosures through which designated entities, including banks, financial institutions, companies and government bodies, report specified financial activities. These include applicable cash transactions, investments and property dealings.

The framework operates under Section 285BA of the Income-tax Act, 1961, read with Rule 114E of the Income-tax Rules, 1962. The information helps authorities compare financial activity with tax returns and identify discrepancies. Taxpayers can also review their Annual Information Statement (AIS) and flag inaccurate information through the income-tax portal.

The action follows broader enforcement efforts, including a nationwide drive reported in October 2025 against entities failing to submit mandatory financial transaction and related account reports for 2023–24 and 2024–25. Common reporting errors include missing PAN details, duplicate entries and incorrect transaction values.

Officials said the property transaction reporting threshold was ₹30 lakh during the previous financial year, rising to ₹45 lakh from the current financial year. The present notices concern earlier transactions subject to the ₹30-lakh threshold.

The department clarified that penalties for SFT non-compliance apply to responsible reporting institutions, not automatically to individuals. Notices do not, by themselves, establish tax evasion. The initiative aims to improve reporting accuracy, strengthen transparency and widen the tax base.