TDS Deduction: If property sellers want exemption in TDS deduction, then do this work immediately by 31st May

At present, the Income Tax Department has given immediate relief from TDS deduction to home buyers. For this, the seller selling the property will have to link his PAN-Aadhaar by May 31. If the seller defaults, the buyer will have to pay additional TDS at the increased rate. Notices were also issued to many people in this matter.

Notice to over 16,000 home buyers: Over the past year, notices were sent to more than 16,000 home buyers across the country asking them to pay additional TDS on the property they purchased. The Income Tax Department said that the PAN numbers of the sellers selling this property are either inactive, or not linked to Aadhaar. In such a case the buyer will have to pay additional tax.

Now in a recently issued circular, the department has given relief to such home buyers and sellers and given time till May 31, 2024 to link PAN and Aadhaar. This means that the buyer will have to request the seller to link his PAN with Aadhaar to get the tax notice rejected.

what does the rule say

According to income tax rules, if the price of the property being purchased is more than Rs 50 lakh, then home buyers will have to deduct one percent TDS on the sale price and deposit it with the government. If the seller of the property does not have a PAN or is considered inactive, the TDS rate increases to 20%.

According to the rules effective from July 1, 2023, if PAN is not linked to Aadhaar then PAN will be considered inactive. In the notice sent by the Income Tax Department, a demand has been made to pay additional TDS of 19 percent citing the seller's PAN being inoperative.

Experts said – the seller should be responsible

In this matter, experts say that the Income Tax Department should make it the responsibility of the seller to link his PAN card with Aadhaar, and not put the burden of TDS on the buyers. Not only this, if PAN-Aadhaar linking is not done by the stipulated date, a notice should be sent to the seller.

Many buyers reached court

After receiving the notice from the Income Tax Department, many home buyers had approached the court. The petitioners say that they had no fault. He followed all the legal procedures, but is facing a notice from the Income Tax Department.