New Delhi, The Supreme Court on Wednesday dismissed a petition alleging absence of a mechanism to make people aware of their obligations while buying property worth more than deduction at source. ₹50 lakhs.
SC dismissed the petition alleging absence of mechanism to make people aware about TDS obligationA bench of Justices Vikram Nath and Sandeep Mehta refused to entertain the plea which contended that bona fide purchasers acting in good faith faced penalty and interest later, even though there was no intention to default.
“Dismissed,” ordered the bench.
The petitioner, who appeared before the court in person, told the bench that the petition related to an issue relating to the application of a provision of the Income Tax Act to property transactions. ₹50 lakhs.
“Under the present framework, the entire TDS obligation or liability is placed entirely on the buyer on the implicit assumption that every property buyer, irrespective of background and skill, has a working knowledge of income tax laws,” the petitioner said.
More Read
He claimed that the idea became absurd as there was no administrative mechanism for awareness of the scrutiny at the property registration stage.
Referring to his personal case, the petitioner said that he was a first-time home buyer, unaware of this requirement.
“This proves that the problem is systemic. Many buyers complete registration without TDS verification,” he said.
More Read
The petitioner claimed that the Registrar’s office had no mechanism to check compliance.
He clarified that he was not challenging the tax liability or validity of the provisions of the Income Tax Act.
“I’m just asking for a limited direction on institutional safeguards…. so that citizens are not unwittingly pushed into default by systemic loopholes,” he said.
The petitioner argued that such measures would protect citizens, improve voluntary compliance and protect government revenue.
This article was generated from an automated news agency feed without text modification
