Update on PAN-Aadhaar Link: Exciting news! Instead of paying 1% TDS, those who do not connect PAN to Aadhaar would be required to pay 20%

Update on PAN-Aadhaar Link: Exciting news! Instead of paying 1% TDS, those who do not connect PAN to Aadhaar would be required to pay 20%

Update on PAN-Aadhaar Link: Exciting news! Instead of paying 1% TDS, those who do not connect PAN to Aadhaar would be required to pay 20%

PAN-Aadhaar Link: The Income Tax Department has begun notifying purchasers of real estate valued at more than Rs 50 lakh, over six months after the deadline for connecting Aadhaar and PAN expired.

News about Property Purchases: This information may be helpful to you if you want to purchase real estate. Please ensure that your PAN card and Aadhaar card are connected before registering the property. Additionally, it is crucial that the seller of the property you are purchasing has a connected PAN and Aadhaar card. In the event that this is not the case, you could be required to pay 20% TDS on the property rather than 1%.

Guidelines for properties valued at least Rs 50 lakh

The Income Tax Act stipulates that the buyer of any property valued at Rs 50 lakh or more must pay 99 percent of the entire cost to the seller and 1 percent TDS to the federal government. After the deadline for connecting Aadhaar and PAN expired about six months ago, the Income Tax Department has begun notifying buyers of properties above Rs 50 lakh. They have been requested to pay 20% TDS on the acquisition of real estate in this notification.

Notes are being sent to vendors and buyers.

Reportedly, hundreds of prospective homebuyers have gotten these notifications. In reality, real estate brokers have not connected their PAN to Aadhaar. Since the property seller's PAN card was not connected to Aadhaar, it became invalid in the majority of situations. When acquiring property worth more than Rs 50 lakh, purchasers whose PAN card is inoperative are sent notice to pay the unpaid TDS after a few months.

This is the whole issue.

The Income Tax Act's Section 139 AA mandates that Aadhaar be linked to the ITR. The Income Tax Department has discovered several instances where the PAN and Adhaar are not connected. The Income Tax Department has sent notices to these purchasers. The deadline for combining your PAN card with Aadhaar was March 31, 2022. PAN and Aadhaar may be connected for free up to this point. However, additional TDS may now be collected from those who have not connected their PAN and Aadhaar. PAN and Aadhaar may still be linked if a Rs 1000 late charge is paid.