PAN Aadhaar Link: In the event that your PAN and Aadhaar cards are not linked, you might have to pay 20% TDS rather than 1% when buying real estate. In accordance with the new regulations, the Income Tax Department mailed notices to hundreds of property buyers.
TDS Requirement for Property Purchase
As per the Income Tax Act, a buyer who buys a property for Rs 50 lakh or more has to pay the central government 1 percent TDS and the seller 99 percent of the total cost. The Income Tax Department has sent notices to buyers of properties worth over Rs 50 lakh, almost half a year after the deadline for linking Aadhaar and PAN ended, informing them that they must pay 20 percent TDS on the purchase of the property.
Reported Discovery of Unlinked PANs
The report states that the department has discovered numerous instances in which property sellers’ PANs are not connected to Aadhaar cards. Since the property seller’s PAN card was not connected to Aadhaar, it became invalid in the majority of cases. In this case, purchasers with inactive PAN cards start getting notices after a few months reminding them to pay the unpaid TDS on properties over Rs 50 lakh.
Mandatory Aadhaar Linkage in ITR
The Income Tax Act mandates that Aadhaar be linked to an ITR. The deadline for combining your PAN card and Aadhaar was March 31, 2022. You can still link your PAN and Aadhaar, though, if you pay a Rs 1000 late fee.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.