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.

No PAN! Be ready to pay 20% Tax on Property Sale

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