Hi @Surbhi_Pal
What is the process now as the demand is still showing up on default summary.
Can you let know if this is going to be waived off automatically, if yes then how long it might take?
Or we need to do something from our side
Hi,
I also received a notice of default under section 200A. I made the TDS payment only after successfully linking Seller PAN with Aadhar, yet I still received a notice of short deduction. So the waiver is applicable for the transaction which is made during april month 2024 or it is till March-31 alone. Can anyone provide some guidance or help please on how to resolve this issue.
Hey @Bijit_Biswas,
CBDT has announced that the buyer is not liable to deduct TDS at a higher rate for transactions entered up to the 31st March 2024 if the PAN of the seller becomes operative by 31st May 2024.
However, there has been no specific update for the demands that have already been issued. Hence, in this case, we’ll have to wait for some further clarification from the department.
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Hey @Balakumar,
As per the notification by the CBDT, for transactions entered up to 31st March 2024, there will be no liability to pay TDS at a higher rate.
Hence, if you had paid TDS for a transaction that was made before the above-specified date, in my opinion, there should not be any liability on the buyer to pay the TDS at the higher rate.
However, if the transaction happened after 31st March 2024, you will have to pay the default TDS amount and the seller can later claim the same as a refund while filing their ITR.
Hope this helps!
Thanks @Surbhi_Pal , so you mean like we can claim the amount which we are paying as a short deduction (19%) right or how much refund can be claimed and when we can claim it? I am a buyer, Kindly assist.
Hi @Balakumar,
The taxes are deducted on behalf of the seller and the same would be reflected as the seller’s tax credits. Hence, the seller would be able to claim these while filing the ITR.
Hello Bijit,
Yes you have to ensure seller pan is linked to aadhaar and operative again before End of May (consider 20th May with some buffer). Once linked within a week time it shows operative.
You should either email to tds with proof or visit your AO office with pan aadhaar linking challan copy once you filed the 26QB correction again.
I would suggest to visit to expedite the process.
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Hi @Shakti_Kumar ,
First for all congrats for getting your defaults waived off.
As per ITD, TDS registered before March 31st and whose PAN is inoperative and got it done before May 31st would get the exception. And i think you are one of them.
I would like to know if there are any other members who got this nullified for the TDS paid after April 5th to till date and whose PAN is linked after getting a notice. Please throw some light.
Also, There are many innocent buyers who are still falling into this trap, Right now, still i dont believe even few ppl didnt link their PAN after many warnings and with this minor point where we overlook getting into this trap. The GOVT site should warning that " you cannot pay or FILE TDS to this PAN since its not linked Alert" when we try to pay amount and avid unnecessary pain. Its simply moving and the TDS is getting generated on their PAN. Not sure when this will change. Many comes here after getting affected or getting notice. Should see if we get any new notice. THere should be a change since buyers are effected and they cant pay again as they will already be in debt after taking a property on loan.
@Jitendra_Magaji Did you get all the money from seller that you paid for defaults? Do we need to wait till next year tax filing if we pay them now?
@chandraprakash Same situation. Seller isnt responding at all, not bothered at all to link the Aadhaar. when its talk of the town to Link PAN & Aadhaar at this stage, surprise how few ppl never link. we dont even think of checking this during buying because many realtors/lawyers helping us to complete process and there may be a chance of over look. The Amendment should be changed , Its the mistake of both seller - who didnt link and buyer- who didnt verify, so 10-10% should be levied on both. or there should be some change in system. 1% tds is ok but 20% whom to bother?
Hello All,
We recently bought a flat for 1Cr but at the time of paying the TDS for seller his pan wasn’t active. So a demand was create and the seller has agreed to pay the amount. I have paid the demand amount on income tax site. Since there is no change to challan should I submit a correction change in 26QB form also. Please let me know.
Thank you.
Hey @Gautham2311,
Once you have paid the demand, there is no further action required from your end. The amount paid will be reflected in the seller’s Form 26AS as TDS and they will be able to claim the same while filing their ITR. You can connect with the seller and confirm the same.
Hi Everyone
Update from my side.
I got the demand on 22nd of January and then my seller linked PAN and Aadhar on February 28th.
After we received the new circular of clearing the demand from IT dept got my demand cleared tomorrow.
People who have got the demand before 31st March and got their pan and aadhar linked before may end will get their demands cleared automatically without doing anything
Hi @Bijit_Biswas,
Thanks for the update. This is going to help many.
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I got notice of short deduction . Transaction date is in May-24.If my seller paid demand for defaults u/s 200A in may -2024 , when the seller will be able to claim refund i.e. after how many months?
Hey @alanka,
As the transaction took place after 31st March 2024, it will be considered a transaction for FY 24-25. A refund can be claimed by filing the ITR for this financial year which will be filed in AY 25-26, i.e. from 1st April 2025.
Hope this helps!
Hi, Please clarify that, we are supposed to pay the higher tax for PAN inoperative, then how does that can be reflected as the seller’s tax credits and he claim for the Refund ?
Hey @Balakumar,
Whenever the buyer files Form 26QB, they are required to enter the details of the seller including their PAN. The TDS is then reflected in the seller’s Form 26AS as tax credits. The seller can then claim a refund of this while filing their ITR.
Hi, I received a demand for short deduction of TDS, transaction date is 30th April, 2024. Seller is not paying the 19%, what should i do?
Hey @kalpana_chaudhary,
There’s no other alternative to this. The demand has been waived off for transactions entered up to the 31st March 2024 if the PAN of the seller becomes operative by 31st May 2024. As in your case the demand is issued after this date, TDS default needs to be paid. The seller can later claim the excess TDS as refund by filing their ITR.