A resale property transaction can appear fully completed on paper, yet one overlooked tax detail can still create a serious compliance problem for the buyer
By Arosh John, Founder, John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief, Thane Real Estate News (TREN)
Thane–MMR | March 17, 2026
Buying a resale flat is often seen as a more straightforward and transparent decision. The buyer can inspect the actual home, assess the building, understand the neighbourhood, and review the society’s functioning before proceeding. In many cases, resale homes also offer stronger carpet-area value and immediate possession compared to under-construction inventory.
Yet resale property transactions come with their own set of risks. One of the most overlooked is the seller’s PAN status at the time of TDS compliance.
At first glance, this may appear to be a minor procedural detail. In reality, it can become a serious issue for the buyer even after the agreement is registered and the payment has already been released.
A Compliance Gap Many Buyers Still Miss
In most resale property transactions, buyers focus closely on title papers, agreement terms, society records, maintenance dues, loan closure, possession, stamp duty, and registration. TDS is often treated as a routine compliance step and left entirely to a CA or tax consultant.
That is precisely where problems can begin.
If the seller’s PAN is not active at the time of filing Form 26QB, the transaction can move into a far more complicated compliance position. Many homebuyers are still unaware of this risk. On the surface, the transaction may appear closed. On the tax side, however, exposure may still remain.
Where The Issue Begins
In a qualifying resale property transaction involving a resident seller, TDS under Section 194-IA must be handled correctly by the buyer. That includes proper deduction, timely deposit, and correct filing through Form 26QB.
The complication arises when the seller’s PAN is inoperative.
With PAN-Aadhaar compliance becoming stricter, an inoperative PAN can carry wider consequences across tax deduction rules. If TDS is deposited at the normal rate without properly checking PAN status in advance, the buyer may later face a short-deduction issue.
That can trigger notices, portal demand, interest exposure, correction filings, delays, and months of avoidable stress over a transaction that otherwise appeared complete.
Why Resale Buyers Should Take This Seriously
Unlike a developer sale, a resale property transaction is usually handled through multiple moving parts. A broker may negotiate commercials. A bank may process the loan. A document consultant may assist with drafting and registration. A CA may handle Form 26QB. The seller may assume everything is in order. The buyer may believe that professional involvement means the process is fully protected.
But responsibility does not disappear simply because many people are involved.
If one important check is missed, the buyer may still be the one left dealing with the consequences.
That is why PAN verification should never be treated casually in a resale property transaction.
What Buyers Should Verify Before Filing Form 26QB
Before the final payment leg and before filing the property TDS form, the buyer should ensure that the tax side of the transaction is reviewed with the same seriousness as title due diligence.
The seller’s PAN should be verified as active and valid. The seller’s name and PAN details should match the records being used for filing. The seller’s residential status should also be clearly confirmed, because the tax treatment differs materially between resident and non-resident transactions.
These are not minor clerical points. They directly affect the buyer’s compliance exposure.
A Practical Lesson For The Resale Market
This is not a reason to avoid resale purchases. Resale remains one of the most important segments of the housing market, especially for buyers seeking larger homes, established locations, functioning societies, and immediate possession.
But the process demands a sharper checklist.
A registered agreement does not automatically mean every risk is over. Completion of payment does not always mean the tax side stands fully closed. A bank’s involvement does not replace the buyer’s own need for careful verification.
That is the lesson the market needs to absorb more clearly.
Why Experienced Resale Guidance Adds Real Value
This is also where an experienced real estate consultant brings value beyond simply identifying the right property or negotiating the right number.
A well-handled resale property transaction depends on much more than commercial closure. It requires close attention to ownership trail, existing loan status, society requirements, possession readiness, seller-side documentation, tax-related checkpoints, and coordination between buyer, seller, bank, CA, and registration teams.
In many resale property transactions, disputes do not arise because the asset itself is problematic. They arise because one important detail was ignored until it became costly.
An experienced consultant helps reduce that risk by ensuring the transaction is approached in a more structured, disciplined, and practical manner from the beginning.
For buyers operating in active markets such as Thane and Mumbai, that professional oversight can make a meaningful difference to how smoothly the transaction progresses.
A Simple Check That Can Prevent A Larger Problem
For any resale property transaction above the applicable threshold, PAN-status verification should now be treated as a standard pre-transaction step. It should be completed before filing Form 26QB and before assuming the TDS side is fully covered.
In today’s compliance environment, one missed verification can create a completely avoidable dispute later.
Buyers are usually alert about title, possession, maintenance dues, share certificate, and loan papers. PAN status now deserves a place on that same list.
One More Resale Risk Buyers Should Not Ignore
Property transactions are demanding enough even when everything proceeds correctly. No buyer should face a major tax demand later because a basic verification was skipped at the time of TDS compliance.
As resale activity continues across Thane, Mumbai, Pune, and the wider MMR market, awareness around such issues becomes more important. Many buyers still do not realise that an inactive PAN can create a serious compliance complication in a property transaction.
That is why this issue deserves far wider attention among buyers, sellers, brokers, and professionals involved in the resale segment.
For buyers and sellers who want a more structured and professionally managed resale property transaction in Thane and Mumbai, the right guidance at the right stage can help prevent unnecessary mistakes, delays, and compliance complications.
For professional consultation in resale property transactions, call Arosh John at 9819881455.
Also READ: TDS on Property Sale (2025): The 1% Rule Every Buyer in India Must Know
Also READ: TDS on Sale of Property — Resident vs NRI Sellers (Updated for 2025)
About The Author
Arosh John is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN), a platform dedicated to factual, insight-driven coverage of Thane, Mumbai, and the wider MMR property market.
With over a decade of on-ground experience across resale property transactions, premium apartments, villas, investor transactions, and strategic market advisory, he is known for combining practical transaction expertise with data-backed real estate journalism. His work focuses on helping buyers, sellers, and investors navigate the market with greater clarity, stronger due diligence, and sharper local understanding.
Disclaimer
This article is intended for general informational and educational purposes only. It should not be treated as legal, tax, or accounting advice. Tax treatment may vary depending on transaction structure, seller residency, timing, documentation, and later regulatory or procedural updates. Readers should consult a qualified CA or tax professional before acting on any tax-related aspect of a property transaction.
