Income Tax Update: Income Tax Department gives big relief to home buyers, complete this work by 31st..
The Income Tax Department has currently given immediate relief from TDS deduction to home buyers. For this, the seller selling the property will have to link his PAN-Aadhaar by May 31. If the seller defaults, the buyer will have to pay additional TDS at the increased rate. Notices were also issued to many people in this matter.
Notice to more than 16000 home buyers-
In the last year, notices were sent to more than 16,000 home buyers across the country asking them to pay additional TDS on the property purchased. The Income Tax Department said that the PAN numbers of the sellers who sold this property are either inactive or not linked to Aadhaar. In this situation, the buyer will have to pay additional tax.
Now in a recently issued circular, the department has given relief to such home buyers and sellers and given time till May 31, 2024, to link PAN and Aadhaar. This means that the buyer will have to request the seller to link his PAN with his Aadhaar to get the tax notice rejected.
What does the rule say?
According to income tax rules, if the value of the property being purchased is more than Rs 50 lakh, then home buyers have to deduct one percent TDS of the sale price and deposit it with the government. If the seller of the property does not have a PAN or is considered inoperative, the TDS rate increases to 20%.
According to the rules effective from July 1, 2023, if PAN is not linked to Aadhaar, PAN is considered inactive. In the notice sent by the Income Tax Department, citing the inactivity of the seller's PAN, a demand has been made to pay an additional 19 percent TDS.
Experts said – the seller should be responsible
In this matter, experts say that the Income Tax Department should make it the responsibility of the seller to link his PAN card with Aadhaar, and not put the burden of TDS on the buyers. Not only this, but if PAN-Aadhaar is not linked by the due date, a notice should be sent to the seller.
Many buyers reached court-
Many home buyers had approached the court after receiving the notice from the Income Tax Department. The petitioners say that they had no fault. He followed all the legal procedures but is facing a notice from the Income Tax Department.
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