For any property
transactions and dealings, every individual needs to provide the PAN Card
(Permanent Account Number) and if it is not done then people may have to face
the consequences. Dealings and transactions are done in buying Property in Kolkata follow the rules which are compulsory for
everyone. PAN card is equally important in the process of buying, selling and
leasing out any property and also for non-financial transactions also in this
digital generation.
There are some important factors for which PAN Card
is mandatory.
PURCHASING A PROPERTY7u:-
Expect the
agricultural land, if any individual purchase any immovable property in real
estate and if the value exceeds Rs.50lakhs from the individual who is residing
in India, he needs to cut 1% of tax during the payment to the builder or
seller. People need to have TAN (Tax deduction Account Number) to deposit TDS
(Tax deducted at Source) and as it applicable for all taxpayers when it is required
to deduct tax from a steady property during purchasing it. But now instead of
TAN, every person should have to provide the PAN Card for paying the TDS
according to the law. This is also applicable even if you don’t have any
taxable income and the ITR (Income Tax Returns) also does not need to file.
As per the current
rules of law, the builders also need to provide the PAN Card as if he fails
then the buyers need to deduct 20% tax instead of 1%tax.
GET CREDIT FOR TDS FROM RENTAL INCOME:-
If the amount of rent
exceeds 10.8lakhs in a year then the TDS is will be deducted at the rate of 10%
as per the rules of law in rented immovable property. If the property holder
fails to provide the PAN Card then the resident can deduct tax at the rate 20%
and the landlord cannot get the benefit of credit also. The landlord has to
face the double consequences if he does not give the PAN: (A) he cannot get the
credit of 20%TDS and (B) instead of 10%. The deduction of 20% tax will be done.
The deductor also can
draw a penalty of Rs.10000 in case of failure in showing PAN Card.
RECEIVING INCOME WITH PAYING TDS:-
A person can benefit
itself in rental income by filling up the form no.15G and 15H if the individual
is under 60 and if the person is a senior citizen consecutively. But that
particular person cannot enjoy these benefits if there is no mention of PAN
Card in those forms. With that, the payer of the income will deduct 20% of TDS
on the rent.
REQUIREMENT OF PAN IN THE TRANSACTIONS OF SALE OR PURCHASE:-
The law clearly states
that the PAN is mandatory for both purchases and sells transactions on every
immovable property if the value crosses 5lakhs. The registrar is required to do
the needful in filling up the documents with the correct PAN in the process of
selling or purchasing a property. The registrar has the right to refuse the
sale or purchase documents if they don’t provide the PAN. Instead, they can
provide Form 60 mentioning the proper id and address proofs like passport,
ration card, etc in case of not having a PAN.
