Aadhaar-PAN Link Update: Significant upgrade on PAN-Aadhaar connection; certain individuals may have issues; verify right away

 Aadhaar-PAN Link Update: Significant upgrade on PAN-Aadhaar connection; certain individuals may have issues; verify right away

Aadhaar-PAN Link Update: Significant upgrade on PAN-Aadhaar connection; certain individuals may have issues; verify right away

PAN-Aadhaar Link: You could have to pay a lot of tax if you want to purchase a home and your PAN-Aadhaar is not connected.

PAN-Aadhaar Link: Homebuyers may now run into issues. Taxes must be paid if you decide to purchase real estate. TDS must be used to pay fees in particular. However, the new income tax laws may require you to pay high taxes if there is no PAN-Aadhaar connection. It could be challenging to purchase a home in this circumstance if you haven't connected PAN to Aadhaar yet.

20% TDS must be paid on property if there is no PAN-Aadhaar connection.

1% TDS must be paid on every property purchase that costs more than Rs 50 lakh. In this, the buyer must pay the seller 99% of the total and the central government 1% of the total. On the other hand, the buyer would pay 20% TDS rather than 1% TDS if PAN and Aadhaar are not connected. The Income Tax Department began issuing notifications after the expiration of the deadline for connecting PAN-Aadhaar. Notices are being sent by the government to anyone who purchase real estate valued at more than Rs 50 lakh.

What's wrong?

Aadhaar must be linked in the income tax return in accordance with Section 139 AA of the Income Tax Act. However, the department has discovered several instances in which there is no PAN-Aadhaar connection. The Income Tax Department has sent notices to hundreds of these house purchasers. The Aadhaar-PAN linkage deadline was March 31, 2022. Up until this point, Aadhaar links were free. On the other hand, those who choose not to connect PAN to Aadhaar would pay more in taxes overall. It is possible to connect PAN and Adhaar using the present technology as well. However, in order to complete this connection, a Rs. 1000 late charge must be paid.

Refund stuck to these individuals

Actually, a lot of these house purchasers have received letters of 20% TDS from the Income Tax Department. They have got notification to pay 20% TDS as there is no PAN connection. Twenty percent TDS will need to be paid till PAN is unlinked. For those taxpayers who have property registered in their names but have not yet connected their PAN, the Income Tax Department has not processed their refund. Only after paying 20% of TDS would such taxpayers get a refund.

Ways to connect Pan-Aadhaar

Visit the Income Tax e-filing website to connect PAN-Aadhaar.

You will find the fast links option on the site's left side. You must choose the "Link Aadhaar" option here.

Your name, Aadhar number, and PAN must be entered here. Following the submission of this data, you will get an OTP.

You will connect your PAN and Aadhaar after completing the OTP.

Remember that your Aadhaar and PAN information are cross-checked by the Income Tax Department to ensure their validity.