Seller not supporting for TDS deduction

Dear Client,
When a seller is not cooperating with a TDS deduction on sale of property, it potentially affects the buyer, who is legally responsible for deducting TDS and depositing the tax with the Income Tax Authority. If the seller does not provide a PAN or their PAN is inoperative, the buyer may deduct TDS at 20% instead of the standard rate under Section 206AA of the Income Tax Act. For property transactions where the sale exceeds ₹50 lakh, the buyer must file Form 26QB and issue Form 16B to the seller. If the seller does not cooperate with the process, you can file a written complaint with your jurisdictional Assessing Officer(AO), providing details of the transaction and non-cooperation of the seller. You can use the Income Tax Department's "e-Nivaran" or "File complaint of tax evasion" portal to report the issue. Income Tax is a branch of law or legislation that eventually comes under the arena of Chartered Accountants and Tax Consultants, who have expertise and in-depth knowledge on the subject and may guide you properly. Hence, it is advisable to consult with them to navigate the issue in the right way.

Dear Sir,

If a seller refuses to cooperate with the TDS process, they are putting themselves in a disadvantageous position. Here's why and how you should proceed:

Written Communication: Formally communicate with the non-cooperative seller in writing (e.g., via email or registered post) about your legal obligation to deduct TDS. Clearly state that their failure to provide a valid PAN has resulted in you having to deduct TDS at a higher rate of 20%, as mandated by law. This creates a paper trail and protects you from future disputes.

The Seller's Loss: The deducted TDS amount is a credit for the seller. By not cooperating and allowing you to deduct it at the correct rate (or providing an operative PAN), they will lose out on this tax credit and may have to face the hassle of resolving this with the Income Tax Department later.