AHMEDABAD: Buying a property? While you will ensure you have linked your Aadhaar and PAN cards, do ensure the seller from whom you’re buying the property has also done the needful. Or else, be prepared to pay 20% tax deducted at source (TDS) on your purchased property instead of 1%.
According to the provisions of the Income-Tax Act, the buyer of any property worth Rs 50 lakh or above must pay 1% TDS to the central government and 99% of the total cost to the seller, who can later claim it as credit.
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.
According to chartered accountants, hundreds of property buyers have received such notices because the seller of the property has not linked their PAN with Aadhaar.
Chartered accountants have therefore pressed for property sellers apart from contractors, brokers, professionals, among others to ensure their PAN and Aadhaar are linked.
“In most cases, the property seller’s PAN card becomes inoperative as it has not been linked with Aadhaar. Therefore, buyers are receiving notices after a few months to pay TDS dues for having purchased a property above Rs 50 lakh from a seller whose PAN card is deactivated.”
