Short deduction of TDS in case of Purchase of Immovable Property

Hi,
I have a query. A person purchased an immovable property worth 60 lakhs in Feb-24 and deducted TDS @1% as per 194IA. However, the buyer PAN was inoperative and therefore TDS was supposed to be deducted at 20% but instead buyer deducted the TDS @ 1% only. All the payment for consideration has already been paid to seller by buyer.

Now Buyer has received a notice for shortfall of 19% TDS as the seller PAN is still in-operative even after 31st may (a circular was issued recently wherein it was provided that if the deductee PAN is made operative by 31st May then deductor shall not be liable for default on account of shortfall) and is being saked to pay 11,40,000 (12 Lakhs - 60k already paid). What should buyer do in this scenario as he is un-necessarily required to make the payment worth 11.40 lakhs.

Hey @garg.pulkit131,

Here’s are 2 threads where this issue has been discussed in detail. Let us know if you still have doubts.

Thanks @Surbhi_Pal. While the threads address most of the concerns, however, in my case the seller is not cooperative. Neither he has linked his PAN with Aadhaar yet and nor he is ready to pay the amount which we are supposed to pay now due to default on his part. What should be done in this case?