Income-tax Act, 1961 · Chapter XXC: Purchase by Central Government of Immovable Properties in Certain Cases of Transfer
Section 269UC: Restrictions on transfer of immovable property
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
In plain words
This section restricts the transfer of immovable property in specified areas if the value exceeds five lakh rupees. It requires the transferor and transferee to enter into a written agreement at least four months before the intended transfer date. The agreement must be submitted to the appropriate authority in a prescribed form. If the statement is defective, the authority allows time for correction, or the statement is deemed never furnished.
- Applies to immovable property in prescribed areas with a value exceeding five lakh rupees.
- Requires an agreement between transferor and transferee at least four months before the transfer date.
- The agreement must be in writing, in a prescribed form, and verified in a prescribed manner.
- Parties must furnish the statement to the appropriate authority within the prescribed time.
- If the statement is defective, the authority intimates the defect and allows fifteen days for rectification.
- The authority may allow further time for rectification on application at its discretion.
- If the defect is not rectified in time, the statement is deemed never to have been furnished.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882), or in any other law for the time being in force, [no transfer of any immovable property in such area and of such value exceeding five lakh rupees, as may be prescribed], shall be effected except after an agreement for transfer is entered into between the person who intends transferring the immovable property (hereinafter referred to as the transferor) and the person to whom it is proposed to be transferred (hereinafter referred to as the transferee) in accordance with the provisions of sub-section (2) at least [four months] before the intended date of transfer.
(2) The agreement referred to in sub-section (1) shall be reduced to writing in the form of a statement by each of the parties to such transfer or by any of the parties to such transfer acting on behalf of himself and on behalf of the other parties.
(3) Every statement referred to in sub-section (2) shall,—
(i) be in the prescribed form ;
(ii) set forth such particulars as may be prescribed ; and
(iii) be verified in the prescribed manner, and shall be furnished to the appropriate authority in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties. [(4) Where it is found that the statement referred to in sub-section (2) is defective, the appropriate authority may intimate the defect to the parties concerned and give them an opportunity to rectify the
defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the appropriate authority may, in its discretion, allow and if the defect is not rectified within the said period of fifteen days, or as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Chapter, the statement shall be deemed never to have been furnished.]
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.