What If the Seller Doesn't Have a PAN?
Short answer: Without a valid PAN, the buyer must deduct TDS at 20% instead of the usual 1%, and Form 26QB/141 can't be processed correctly without it. Always insist on the seller's PAN.
What you need to know
- TDS at 20% instead of 1% under Section 206AA if no valid PAN
- Form 26QB/141 needs both parties' valid PAN to file correctly
- Higher TDS under Section 206AA can similarly hit NRI sellers without PAN
- Verify PAN validity before finalising the deal
Who this applies to: buyers, sellers, CAs
Official / primary source: incometaxindia.gov.in (government source)
Work out your own numbers
CAPGAIN's free calculators cover capital gains (12.5% and 20%-indexed side by side), TDS on property, stamp duty and registration by state, home-loan EMI and prepayment.
Open the CAPGAIN calculatorsRelated questions
How Much TDS Do I Deduct When Buying Property From an NRI?Can I Claim Section 54/54F Exemption for an Under-Construction Flat?Do I Need TDS if the Property is Under Rs 50 Lakh, or Split Between Buyers?How Is Tax Calculated on Property I Bought Before July 2024?Is Home Loan Interest Deductible Under the New Tax Regime?What Happens if I Don't File Form 26QB/141 on Time?
This page summarises CAPGAIN's law library entry income-tax-faq-no-pan-seller. It is general information for India, not advice on your facts. Where a point says something is not yet confirmed, treat it as open and check the latest notification.