Request for Resolution of Demand Notice Regarding TDS on Sale of Property
Dear Group Members,
I hope this message finds you well.
My spouse is the buyer of a property in India. She is house woman and NRI status. In addition, seller was a senior citizen house woman and Indian residence status.
The Property Purchase Details and the related issue as follows:
• Transaction Amount: INR 60 lacks
• TDS Amount Paid: INR 60,000 (1% of the transaction value)
A demand notice was issued indicating a short deduction of TDS at 20% due to the seller's PAN being inoperative and not linked with Aadhaar at the time of the transaction. The seller has since paid a fine of ₹1,000 to link their PAN with Aadhaar. The PAN is now active and linked with Aadhaar.
Despite a correction request submitted by our CA, a new demand notice was issued, still indicating an outstanding amount of 20% from the buyer.
As NRI buyers, we do not have any income sources in India, and this issue originated from the seller’s PAN status, which was beyond our control.
Please advise if any additional documentation is required from our side to resolve this issue.
Could you provide guidance on any further steps we need to take to address this demand notice and resolve the matter?
Thank you for your assistance and understanding.
I look forward to your response.