Seller provides inoperative Pan for TDS deduction resulting 20 TDS demand
3 months ago
I have bought a flat in resale. Its a joint property between father and son in law. i have given complete payment with1 % tds paid for both the seller as per buyer and seller agreement deal. after few days i got tds demand of 20% demand quoting short deduction. After enquiry in found that son in law lives in US for it jobs and have given Indian Pan card and Adhar number which is not connected as per governments norms and Pan is inoperative, he also haven't file ITR. Now as per TDS law i have to pay 20% TDS. What action i can take against them.
A.Dear Client,
As per the 2013 Finance Bill, TDS is applicable when selling immovable property above ₹50,00,000. Recently, the Income Tax department has started sending notices to buyers of such properties, reminding them to pay 20% TDS if they missed the Aadhaar-PAN linking deadline. If PAN becomes inoperative, it can be reactivated by providing Aadhaar details to the I-T department. Failure to link PAN-Aadhaar on time may incur a maximum fee of Rs. 1,000 under section 234H of the Income Tax Act. If you receive an IT Dept notice, seeking assistance from a CA or IT consultant is advisable for proper resolution.
Thankyou
As per the 2013 Finance Bill, TDS is applicable when selling immovable property above ₹50,00,000. Recently, the Income Tax department has started sending notices to buyers of such properties, reminding them to pay 20% TDS if they missed the Aadhaar-PAN linking deadline. If PAN becomes inoperative, it can be reactivated by providing Aadhaar details to the I-T department. Failure to link PAN-Aadhaar on time may incur a maximum fee of Rs. 1,000 under section 234H of the Income Tax Act. If you receive an IT Dept notice, seeking assistance from a CA or IT consultant is advisable for proper resolution.
Thankyou
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A.Dear Client,
As per the Finance Bill of 2013, TDS is applicable on the sale of immovable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). According to rules in respect of tax deducted at source, the buyer of the property would have to deduct the TDS and deposit the same in the Government treasury. Nearly six months after the deadline for linking Aadhaar and PAN cards was over, the I-T department has begun slapping notices to buyers who have purchased properties worth above Rs 50 lakh, asking them to pay 20% TDS on their purchase. If anybody has missed the Aadhaar link deadline and his PAN has become inoperative, he can reactivate his PAN by providing Aadhaar details to the I-T department. If a person fails to link PAN-Aadhaar by the due date, he shall be liable to pay a fee, a maximum of Rs. 1,000 under section 234H of the I T Act. So, on getting notice from IT Deptt. you need to pursue the matter with a CA or IT Consultant to resolve the issue in the right way.
As per the Finance Bill of 2013, TDS is applicable on the sale of immovable property wherein the sale consideration of the property exceeds or is equal to ₹ 50,00,000 (Rupees Fifty Lakhs). According to rules in respect of tax deducted at source, the buyer of the property would have to deduct the TDS and deposit the same in the Government treasury. Nearly six months after the deadline for linking Aadhaar and PAN cards was over, the I-T department has begun slapping notices to buyers who have purchased properties worth above Rs 50 lakh, asking them to pay 20% TDS on their purchase. If anybody has missed the Aadhaar link deadline and his PAN has become inoperative, he can reactivate his PAN by providing Aadhaar details to the I-T department. If a person fails to link PAN-Aadhaar by the due date, he shall be liable to pay a fee, a maximum of Rs. 1,000 under section 234H of the I T Act. So, on getting notice from IT Deptt. you need to pursue the matter with a CA or IT Consultant to resolve the issue in the right way.
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A.Dear sir
You may cancel entire transaction and claim for your sale price and compensation otherwise ask him to pay 20% TDS by himself.
You may cancel entire transaction and claim for your sale price and compensation otherwise ask him to pay 20% TDS by himself.
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