Income Tax News: Homebuyers face potential tax troubles as the Income Tax Department intensifies scrutiny on PAN-Aadhaar linking. Failure to link the two could result in a substantial 20% TDS (Tax Deducted at Source) on property transactions exceeding Rs 50 lakh. The deadline for linking has lapsed, leading to the issuance of notices by the department. Learn about the implications, the refund status of non-compliant individuals, and the steps to link PAN-Aadhaar.
Impact of Non-Compliance
Buying a property valued at more than Rs 50 lakh mandates a 1% TDS payment, with 99% going to the seller. However, without a PAN-Aadhaar link, this rate surges to 20%, posing a significant financial burden on the buyer. The Income Tax Department is actively targeting individuals who have not linked their PAN and Aadhaar.
Deadline Consequences
The deadline for PAN-Aadhaar linking concluded on March 31, 2022. Notices have been dispatched to non-compliant homebuyers, urging them to pay the higher TDS to proceed with property transactions. Those facing delays can still link PAN-Aadhaar by paying a late fee of Rs 1000.
Refund Challenges
The Income Tax Department has withheld refunds for taxpayers with unlinked PAN and property registrations. Only after settling the 20% TDS obligation will these individuals receive their pending refunds.
Simple Steps to Link PAN-Aadhaar
- Visit the Income Tax e-filing website.
- Navigate to ‘Link Aadhaar’ under the quick links section.
- Provide PAN, Aadhaar number, and name details.
- An OTP will be sent for verification.
- Enter the OTP to successfully link Aadhaar and PAN.
Important Crosschecks
The Income Tax Department rigorously crosschecks details to ensure the validity of linked Aadhaar and PAN information. It is crucial for taxpayers to comply with the linking process to avoid adverse financial consequences.
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