If the deductee has no pan, how to pay tds?

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Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Dear Sir,

As per sec.194IA, i have to deduct TDS @ 1%, but the deductee has no PAN, so my query is how to pay TDS Challana? I've duty to deduct & pay challana, but how to pay the same if deductee has no PAN?

please solve my query.

Regards,

CA.Satish

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 November 2013 When the deductee does not have PAN, as per Section 206AA(1) TDS is to be deducted @ 20% .
In the e-tds return you can specify as "No-PAN" against the reasons of higher or lower deduction column.
.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 Dear Satish,

I believe it is not possible to furnish Form 26QB without a valid PAN!!! So you need to ask the seller to procure a valid PAN.

Dear Bafna ji, its not possible or required to file TDS return for 194-IA.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 November 2013 Mr. Nikhil is right. Thanks to Nikhil for correcting me. It was my mistake that I could not see the Section mentioned by the
Author.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 Dear Nikhil, Thanks for solving my query, but if the seller v is not willing to give his PAN, how can I discharge my dirty? Why should I be liable, for others mistake?
This is happening to me practically in person.
Pls resolve. .
Regards. .

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 Dear Satish,

its a typical problem with real estate dealings.

May be you can play hardball. Withhold 20% of the consideration and say that you have to deduct 20% TDS in case no PAN is provided (this is the truth too).

Alternatively, if you have his Date of Birth available, you can find his PAN on your own and pay taxes against the same!!!

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Nikhil, Thanks a lot for your practical solution.
I've one more doubt in Form 26QB, i.e., as it is Challana cum statement of return, how to file TDS Return u/s 194I, after paying the challana.?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 November 2013 Dear Satish,

you are most welcome.

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