Income Tax Department sent notices to hundreds of property buyers under the new rules

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 not linked, you may end up paying TDS of 20 percent on the purchase of property instead of 1 percent. The Income Tax Department sent notices to hundreds of property buyers under the new rules.

According to the Income Tax Act, a buyer purchasing any property worth Rs 50 lakh or more will have to pay 1 percent TDS to the central government and 99 percent of the total cost to the seller.

Nearly six months after the deadline for linking Aadhaar and PAN ended, the Income Tax Department has sent a notice to buyers purchasing a property worth more than Rs50 lakh saying they have to pay 20 percent TDS on the purchase of the property.

If seller’s PAN not linked to Aadhaar card

According to the report, the department has found many cases where the PAN of property sellers is not linked to an Aadhaar card. In most of the cases, the PAN card of the property seller became inoperative because it was not linked to Aadhaar. In such a situation, buyers whose PAN card is inactive are receiving notices after a few months to pay the outstanding TDS on property worth more than Rs 50 lakh.

As per Income Tax Act, it is compulsory to link Aadhaar in ITR. The last date for linking Aadhaar and PAN card was 31 March 2022.However, you can still link PAN and Aadhaar by paying a late fee of Rs 1000.

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