In a significant move, the Income Tax Department of India has mandated that property sub-registrars report gift deeds for assets valued over ₹45 lakh (approximately $54,000 USD). Previously, only property sales were reported, but this change will enhance the department's ability to track property transfers, particularly those intended to avoid taxes. Bhawna Kakkar, a chartered accountant, explained that the new reporting system will include a Statement of Financial Transaction (SFT) that will appear in taxpayers' Annual Information Statements (AIS). This shift is crucial for monitoring compliance with clubbing provisions, which stipulate that income from assets transferred to a spouse must still be reported by the original owner. For instance, if a high-income individual gifts property to a lower-income spouse to benefit from lower tax rates, they must still report any income generated from that property. The new regulations are expected to deter tax evasion tactics, including the use of cash transactions and benami arrangements. Prakash Hegde, another chartered accountant, noted that while legitimate transactions may benefit from increased transparency, those intended to evade taxes will face greater scrutiny.