Haven’t linked your PAN with Aadhaar? Pay 20% TDS for Property Purchase

Haven’t linked your PAN with Aadhaar? Pay 20% TDS for Property Purchase

If you're planning to buy a property, make sure to link your Aadhaar and PAN cards. Additionally, confirm with the seller that they have also linked their documents. Otherwise, you may need to pay a 20% TDS on your purchase, instead of the standard 1%.

As per the Income-Tax Act, if you're buying a property worth Rs 50 lakh or more, you're required to pay 1% TDS to the central government. The remaining 99% of the total cost must be paid to the seller, who can later claim it as credit.

After the deadline for linking Aadhaar and PAN cards has passed, the Income Tax (I-T) department is now sending notices to buyers who have purchased properties worth over Rs 50 lakh. These notices require them to pay 20% TDS on their purchase.

According to chartered accountants, numerous property buyers have been issued notices due to the failure of property sellers to link their PAN with Aadhaar.

To address this issue, chartered accountants are urging property sellers, including contractors, brokers, and professionals, to ensure that their PAN and Aadhaar are linked.

In many cases, the PAN card of the property seller becomes inactive as it is not linked with Aadhaar. Consequently, buyers are receiving notices several months later, demanding TDS payments for purchasing a property worth over Rs 50 lakh from a seller whose PAN card has been deactivated.

By LNN (Liyaans News Network)