The Income Tax Department has sent notices to hundreds of property buyers under new rules. According to the Income Tax Act, buyers purchasing property worth Rs 50 lakh or more must pay 1 percent TDS to the central government. If the buyer’s Aadhaar card and PAN card are not linked, they may end up paying 20 percent TDS instead of 1 percent. The department has found cases where the PAN of property sellers is not linked to an Aadhaar card, resulting in inactive PAN cards. Buyers with inactive PAN cards are receiving notices to pay outstanding TDS on properties worth more than Rs 50 lakh. It is mandatory to link Aadhaar in ITR, and the deadline for linking Aadhaar and PAN card was March 31, 2022. However, you can still link PAN and Aadhaar by paying a late fee of Rs 1000.
If your Aadhaar card and PAN card are notlinked, you may end up paying TDS of 20percent on the purchase of property insteadof 1 percent. The Income Tax Departmentsent notices to hundreds of property buyersunder the new rules.
According to the Income Tax Act, a buyerpurchasing any property worth Rs 50 lakh ormore will have to pay 1 percent TDS to thecentral government and 99 percent of thetotal cost to the seller.
Nearly six months after the deadline forlinking Aadhaar and PAN ended, the IncomeTax Department has sent a notice to buyerspurchasing a property worth more than Rs50 lakh saying they have to pay 20 percentTDS on the purchase of the property.
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If seller’s PAN not linked to Aadhaar card
According to the report, the department hasfound many cases where the PAN ofproperty sellers is not linked to an Aadhaarcard. In most of the cases, the PAN card ofthe property seller became inoperativebecause it was not linked to Aadhaar. Insuch a situation, buyers whose PAN card isinactive are receiving notices after a fewmonths to pay the outstanding TDS onproperty worth more than Rs 50 lakh.
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Aadhaar-PAN can be linked by paying a late fee
As per Income Tax Act, it is cumpulsary tolink Aadhaar in ITR. The last date for linkingAadhaar and PAN card was 31 March 2022.However, you can still link PAN and Aadhaaraby paying a late fee of Rs 1000.
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