PAN No Compulsory for Property Sellers
PAN No Compulsory for Property Sellers
From this month onwards all real estate property Sellers(Excluding Agricultural Land) have to disclose their PAN NO compulsorily during the transaction. Failing, results in 20% Tax cut on the property value. Also all property Transactions above Rs.50 Lakhs, attracts 1% TDS at souce(Where the buyer pays this amount to the dept directly and the same will be deducted in the total Transation Amount to the seller). Read the attached newpaper detail.
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Re: PAN No Compulsory for Property Sellers
Good move which i also read in papers, but how will this curb the gap in market value and guidance(government value) as this is huge black money. If we go and buy property , seller never want whole in white and insists to put government value in sale deed and pay rest as black. 90% of transactions are in black only,and when we insists on full white via bank loan they say NO... by which we loss good buying opportunity. There are people with that huge sum of money (land sharks) whom will buy those by direct CASH build 4 floor or apartments and sell. RICH is become richer ,and we go via bank loans struggles.....unless we find geniue seller who agrees for all white cash. Government know this but they don;t keeping a blind eye on this... Though they revised there guidance value but most of areas are marrket value are much beyond that...
Re: PAN No Compulsory for Property Sellers
sam
your points are also valid one. it may take many more years to make an foolproof effort to check the black money in real estate transactions.
Whereas, as of today, there are plenty of people who do several real estate transactions in a year or own properties of crores of rupees, still they don't have PAN Card or file Income Tax returns every year(This includes lot of our Politicians who are also full time real estate developers). This is a first move, where they have to own a PAN Card and once their PAN No gets recorded in a Real Estate Transaction, they also need to disclose the same in their Income Tax returns for the respective Financial year and pay their capital gain tax. Even though it doesn't eliminate the Black money part completely, to some extent this makes a big difference and will reduce the market gap.
your points are also valid one. it may take many more years to make an foolproof effort to check the black money in real estate transactions.
Whereas, as of today, there are plenty of people who do several real estate transactions in a year or own properties of crores of rupees, still they don't have PAN Card or file Income Tax returns every year(This includes lot of our Politicians who are also full time real estate developers). This is a first move, where they have to own a PAN Card and once their PAN No gets recorded in a Real Estate Transaction, they also need to disclose the same in their Income Tax returns for the respective Financial year and pay their capital gain tax. Even though it doesn't eliminate the Black money part completely, to some extent this makes a big difference and will reduce the market gap.