Property Buyers Face 20% TDS for Not Linking PAN-Aadhaar

Property Buyers Face 20% TDS for Not Linking PAN-Aadhaar

Uncover the PAN-Aadhaar disconnection – buyers face a 20% TDS storm. Ensure a seamless link for a tax-safe property journey.

Buyers are getting an unexpected tax burden as the property market buzzes with transactions. If you’re eyeing a property worth Rs 50 lakh or more, the Income-Tax Department is wielding a 20% Tax Deducted at Source (TDS) hammer instead of the standard 1%, and the reason might be the seller’s failure to link their PAN and Aadhaar cards.

The Income-Tax Act mandates a 1% TDS payment by the buyer to the central government, with the remaining 99% going to the seller. This system, however, hinges on both parties having linked their Aadhaar and PAN cards. In a surprising turn of events, the I-T department has started issuing notices to buyers six months after the deadline, demanding a huge 20% TDS if the seller’s credentials are not in order.

Chartered accountants are witnessing a surge in cases where property buyers are caught off guard due to sellers neglecting the Aadhaar-PAN link. The PAN cards of sellers, crucial for these transactions, are rendered inactive, leading to unexpected financial consequences for the buyers.

Highlighting the urgency of the matter, chartered accountants are urging property sellers, contractors, brokers, professionals, and others involved in financial transactions to ensure their PAN and Aadhaar details are seamlessly linked. Failing to do so may result in a deactivated PAN card and potential legal repercussions for both sellers and buyers.