Answer

1. F

   Facts

   Sub-registrars report property purchases and sales of ₹30 lakh or more. The department wants to know how the purchase was funded and, for a sale, whether capital gains were reported.

2. P

   Provisions and law

   • Sec 285BA, Income-tax Act 1961Banks, registrars, mutual funds and others report specified high-value transactions to the department.
   • Rule 114E, Income-tax Rules 1962 (now Rule 237, Income-tax Rules 2026)Property transactions of ₹30 lakh or more are reported by the registrar.
   • Sec 69, Income-tax Act 1961 (now Sec 103, Income-tax Act 2025)Investments not recorded and not explained can be taxed as income.
3. A

   Analysis

   Prepare a simple funding chart: say ₹60 lakh home loan, ₹20 lakh savings and ₹5 lakh from parents. Attach the loan sanction letter, bank statements and gift letter if asked. If you sold a property, check that capital gains and any exemption claim are in your return. A clear funding trail usually closes such campaigns.

4. C

   Conclusion

   1. 1Make a list of every source used to pay for the property.
   2. 2Collect loan papers, bank statements and gift letters.
   3. 3Respond that the information is correct and explain the funding.
   4. 4If a sale's capital gains were missed, plan a revised or updated return.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.