As an NRI buyer, you are responsible for deducting TDS (1% or 20% if PAN isn't linked with Aadhaar) when purchasing property. The seller's non-compliance with PAN/Aadhaar linking triggered the 20% TDS demand.
Steps to Take:
Respond to IT Notice: Explain the situation, provide proof of the agreement, and seek resolution.
Legal Notice: Issue a legal notice to the seller for reimbursement of additional TDS, citing breach of agreement.
Corrective Action: Consult a tax expert to rectify or revise TDS filings if errors occurred.
Court Option: File a civil suit for recovery if the seller refuses to pay, though this can be time-consuming.
Prevent this in future by verifying PAN/Aadhaar details, deducting TDS directly, and involving a lawyer for agreements.
For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.