Along with the new rule which was proposed during budget 2013-14 i.e. buyers of immovable property, other than agricultural land, to pay TDS of 1% of the deal size for transactions in excess of Rs 50 lakhs under section 194IA effective from June 1, 2013; there is another jolt for those sellers of properties who don’t have PAN.
And the news is those selling immovable property without disclosing a valid Permanent Account Number (PAN) are in for a tough time with the government mandating a 20% tax deduction at source (TDS) in such transactions.
This move is a part of the government’s drive to clamp down on black money in the system, with real estate transactions seen as one of the major sources of generation of black money.