I think this is a mistake at some point in income tax website because before filing the TDS I checked the PAN AADHAAR link status on the income tax website for the Seller and I found that status as LINKED and PAN card Status as ACTIVE. Moreover, Seller has filed the tax on the capital gain on the property purchase few days back that means the PAN is ACTIVE and Operational.
I have filed 26QB to deduct TDS for the Seller. After filing 26QB I have got the notice of INTIMATION U/S 200A OF THE INCOME TAX ACT, 1961 of short deduction.
I am not able to understand how the PAN card can be non operational when the Income tax website is showing the status as ACTIVE and linked with Adhaar and the Seller has paid tax 10 days before.
PAN should be operative and active on the date of payment.
Thus, it seems like the payment was made earlier when the PAN was inactive and later the PAN was linked to Aadhar and current status of PAN might be active.
To respond to such notice, you can pay the demand and the seller can claim the refund of the amount while filing ITR.
To understand other aspects of the same transaction, you can book a MEET with tax expert using the below link:
Thanks @AkashJhaveri yes it’s correct, seller didn’t inform, he linked PAN 9 days later of payment date, can i change the date of payment by rectifying 26qb, I took home loan whose aount was given to the seller
If anyone changed the date of TDS payment and got the issue sorted out, kindly let me know. I heard that in such cases the date change request is pending with AO for more than 3 months.
If you wish to modify the payment date in your TDS return, here’s what you need to do:
First, submit a correction request for the return on the TRACES portal. Once submitted, the correction will require approval from the seller followed by the Assessing Officer (AO).
Was anyone able to claim the amount, or was the seller able to claim the account when they filed the ITR?"
I recently bought an apartment, but the CA I hired to file Form 26QB did not verify the seller’s PAN-Aadhaar status. As a result, I received a notice requiring me to pay an additional 19% TDS.
I wanted to check with those who have experienced this situation—is there a way for me to recover this amount when I file my ITR later this year, or will the seller be the one to receive it?
Any help in this regard is highly appreciated , also noticed that the CA did not file the correct residential status for me (filed Resident instead of Non Resident), not sure if on that ground I can cancel the Challan (26QB) and file it again.
Unfortunately, the seller will get the amount adjusted with their LTCG when they file the returns in July. There is no legal way to guarantee that they pay you back the money.
This is tax terrorism at it’s core and this rule is the most barbaric one I have heard of.
Hi @Surbhi_Pal, I was deposited the Demand and seller got refund but after deposit I was received one Interest demand from IT dept. How may remove this interest demand. Please suggest.
Thanks
Mahesh Sharma