I and my wife recently purchased a property in Noida worth 1.05cr. I paid 1% TDS accordingly. After paying TDS we got the defaults notice u/s 200A. We were shocked to see the short deduction amount. After downloading the justification report from traces, we learned that seller PAN was inoperative. Means he didn’t link PAN with Aadhar. It was not our fault in any way. Any way we got his PAN and Aadhar linked and raised Correction request in TRACES. But we again got defaults u/s 154 with the same short deduction amount. I called the TRACES customer care and they said that if PAN was inoperable when TDS was filed, we have to pay the short deduction amount which is 20% of the 1.05cr. We have taken a plot loan and we are left with nothing. No one seems to help us. Could someone please help? I am ready to pay the fees.
Since the PAN was inoperative at the time of deduction of TDS, you were primarily required to deduct TDS @ 20%. You will have to make the payment for the amount of short deduction to solve the default.
You can ask the seller to pay you the amount of TDS at 20% and you can deposit the same against his PAN by revising the TDS return. The amount recovered from seller will eventually reflect as TDS in his 26AS, the credit of which can be claimed by him at the time of ITR filing.
We have no money left. Also seller will not co-operate in this case. Besides why this is the issue if we filed correction after linking the PAN. This is really absurd. Income tax site should have shown this while filling TDS. What we can do now?
I understand your situation, but the department is considering the PAN status of the date TDS was deducted. When you deducted the TDS, PAN was inoperative, hence TDS @20% was required to be deducted.
There is no other option available to resolve the demand but to pay the same.
The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along with the procedure for verifying the operational status of permanent account number under sub-rule (1) and sub-rule (2).
TDS Dept did not make changes in portal to reflect 20% TDS, why to penalise buyers now.
Hi @Vishal_Verma Hope this reaches to you. I have provided you my contact no. Could you please call ? This is a very stressful situation for my whole family.
my wife recently purchased a property in BANGALORE worth 1.00cr. I paid 1% TDS accordingly, just before day of registration. Next day property registration not done due to seller lost his original sale deed, seller agreed to repay the consideration amount. After paying TDS we got the defaults notice u/s 200A. We were shocked to see the short deduction amount. After downloading the justification report from traces, we learned that seller PAN was inoperative. Means he didn’t link PAN with Aadhar. It was not our fault in any way. I called the TRACES customer care and they said that if PAN was inoperable when TDS was filed, we have to pay the short deduction amount which is 20% of the 1.00cr.
Now my situation is property not registred and it was cancelled,but got notice to pay 20% TDS DUE TO SELLER pan INOPERATIVE.
Any one can give suggestions how to solve this issue…
I have also faced the same issue of getting TDS default demand notice of 19% value of the property. I tried multiple steps including all possible channels(ie. email, calls, went to different IT and TDS CPC offices, contacted several CAs) with no success. If anyone has got this resolved, please let me(raushankgupta89@gmail.com) know. Appreciate your help on it.
I really don’t understand why buyers are made to suffer if seller’s PAN is inactive. If Income tax department want transaction to happen only for ACTIVE PANs, they could simple block us when we provide the Inoperative PAN while paying the TDS. It’s very difficult to get money back from seller to pay the default amount.
The demand notices received by you is a genuine concern. The solution can be only provided by the Income Tax Department, you can reach out on the helpline numbers for further help.
This is absurd. I too got a notice for short deduction and asked to pay the remaining 19% TDS along with interest. It is a complete failure from Income Tax department by not enabling alert on inoperative PAN while paying TDS. Another classic example of harassment to the honest tax payers.
My situation is that I paid 1% TDS to seller. Next day of registration ,then property deal was cancelled and property not registered between both parties due to seller not having relevant documents. I received back consideration amount from seller. but I got notice to pay 19% TDS due to seller PAN is INOPERATIVE while paying 1% TDS. Now I was stuck how to clear this short deduction notice from IT.
I have also faced the same issue of getting TDS default demand notice of 19% value of the property. Anyone has solution for this.
Received the email last week, we have asked Seller to Link the PAN & Aadhar and she agreed to do it, however what will be the further steps to rectify.
We have taken a plot loan and we are left with nothing. No one seems to help us. Could someone please help? I am ready to pay the fees.