| Question And Answer | |
|---|---|
| Subject: | Inoperative PAN of Seller – TDS on sale of property |
| Category: | Income-Tax |
| Querist: | Kiran |
| Answered by: | Law Intern |
| Tags: | TDS deducted |
| Date: | August 4, 2025 |
My client has purchased a property of Rs. 51,00,000 in December 2023. He deducted tax of Rs.51,000. On making TDS challan payment he found that the seller’s PAN is inoperative. He was requesting the seller to get his PAN Operative. Seller’s PAN was made operative in July 2025. My client has paid TDS on property of Rs.51,000 (1%) on 16-7-25 and got TDS default demand @ 20% along with huge interest. What is the remedy to save this TDS demand and interest?
I assume the TDS is reflecting in the seller’s 26AS. If not, you will have to amend Form 26B and/or write to the TDS CPC to grant the seller credit.
There is no justification for the default demand on the buyer as the TDS could not be deposited due to a default of the seller. This will have to be argued before the AO with documentary evidence that the PAN was inoperative till July 2025, which caused the delay. If the AO does not accept, the same will have to be challenged in appeal.