TDS rules in property transactions: Now 20% TDS will have to be paid on purchasing property above this amount? Know what are the rules

PAN-Aadhaar Link: Now problems may increase for home buyers! If you go to buy property, you will also have to pay tax. Especially the fees will have to be paid in the form of TDS. But, if there is no PAN-Aadhaar link, then according to the new income tax rules, you may have to pay heavy tax. In such a situation, if you have not yet linked PAN-Aadhaar, then buying a house may be difficult.

If PAN-Aadhaar is not linked then pay 20% TDS on property.

If you buy a property worth more than Rs 50 lakh, then 1 percent TDS has to be paid on it. In this, the buyer has to pay 1% TDS to the central government and 99% to the seller. But, if PAN-Aadhaar is not linked then the buyer will have to pay 20% TDS instead of 1% TDS. The deadline for linking PAN-Aadhaar has ended and after the deadline, the Income Tax Department has started sending notices. The department is sending notices to those buying property worth more than Rs 50 lakh.

What is the matter?

Under the provisions of Section 139AA of the Income Tax Act, it is mandatory to link Aadhaar in the income tax return. But, the department has found many cases where there is no PAN-Aadhaar link. Notices have been issued to hundreds of such home buyers by the Income Tax Department. The deadline for linking Aadhaar-PAN was 31 March 2022. Till this time limit, Aadhaar could be linked for free. But, those who do not link PAN-Aadhaar are facing higher taxes on many fronts. PAN-Aadhaar linking can also be done in the current system. But, for this the link will have to be done only by paying a late fee of Rs 1000.

Refund of these people stuck!

Actually, the Income Tax Department has sent notices of 20 percent TDS to many such home buyers. Due to lack of PAN link, he has received a notice to pay 20 percent TDS. Until PAN is linked, 20 percent TDS will have to be paid. The Income Tax Department has not processed refunds of taxpayers who have not yet linked PAN and have property registered in their name. Refunds to such taxpayers will be issued only when 20 percent TDS is paid.

How to link PAN-Aadhaar

• To link PAN-Aadhaar, visit the Income Tax e-filing website.
• On the left side of the site page you will find the option of Quick Links. Here you have to click on 'Link Aadhaar' option.
• Here you have to enter your PAN, Aadhaar number and name. After giving this information you will be sent an OTP.
• After entering the OTP, your Aadhaar and PAN will be linked.
• Keep in mind that the Income Tax Department crosschecks your details to see whether your Aadhaar and PAN information is valid or not.