TDS relief for New Home buyers:

TDS relief for New Home buyers Income Tax Department has given TDS Relief to New Home Buyers. Now a buyer who is buying property from seller, who has not linked his PAN and Aadhaar, for Transactions entered up to 31st March 2024, and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31.05.2024, there shall be no liability on the deductor/collector to deduct/collect the higher TDS under Sections 206AA/ 206CC of the Income Tax. The Relevant Paragraph of the Circular providing relief reads as follows: 3. Several grievances have been received from the taxpayers that they are in receipt of notices intimating that they have committed default of 'short­deduction/collection' of TDS/TCS while carrying out the transactions where the PANs of the deductees/collectees were inoperative. In such cases, as the deduction/collection has not been made at a higher rate, demands have been raised by the Department against the deductors/collectors while processing of TDS/TCS statements under section 200A or under section 206CB of the Act, as the case maybe. 4. With a view to redressing the grievances faced by such deductors/collectors, the Board, in partial modification and in continuation of the Circular No. 3 of 2023, hereby specifies that for the transactions entered into upto 31.03.2024 and in cases where the PAN becomes operative (as a result of linkage with Aadhaar) on or before 31.05.2024, there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC, as the case maybe, and the deduction/collection as mandated in other provisions of Chapter XVII-B or Chapter XVII-BB of the Act, shall be applicable.