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Spaze Privy Sector 72 Gurgaon

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Spaze Privy Sector 72 Gurgaon

Last updated: October 20 2018
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  • Re : Spaze Privy Sector 72 Gurgaon

    Tds

    In an attempt to address the fiscal deficit and increase revenue collection, among other things, the finance minister has said that 1% tax will be deducted at source (TDS) on immovable property. The cut-off value for such a transfer of property is above Rs.50 lakh. So if you have a house or a plot of land, which is valued above Rs.50 lakh at the time of sale, then you will have to pay a TDS of 1% while selling it. Agricultural land is exempt from this.
    The proposed TDS provision is to be applied to transfer of immovable property, wherein the ‘immovable property’ means:
    Any land (other than agricultural land) or
    Any building; or
    Part of a building.
    As per Finance Bill 2013, the proposed amendment will be applicable from 1 June 2013.
    Similar provisions were also proposed by the Finance Bill, 2012; but due to much hue and cry, the said provisions were not incorporated when the final Bill was passed by the parliament. It is worthwhile to see how the current TDS provision which are applicable to sale of immovable property is different than proposed vide Finance Bill, 2012.
    In Finance Bill 2012 TDS was proposed to be applicable only if -
    Sale consideration equal to or more than INR 5,000,000 for immovable property in specified areas
    Sale consideration equal to or more than INR 2,000,000 for immovable property in other areas
    But in Finance Bill 2013 TDS applicable only if consideration equal to or more than INR 50, 00,000.
    Further, in Finance Bill 2012 there were following provisions too, such as –
    Stamp duty value has to be considered for withholding of taxes where the consideration for transfer is less than the stamp duty value
    Proof of withholding of taxes to be furnished to the authority registering the document of transfer of immovable property, failing which the property will not be registered
    Tax Deduction Account Number (TAN) is not compulsory to the Purchaser of property to comply with the above provisions
    However these provisions are there in Finance Bill 2013.
    The reason of introducing this TDS provision is not quoting of PAN number by seller or buyer in most of the transactions and significant transactions not being reported.
    To track the real estate transactions in more realistic manner, the Finance Minister has introduced this new TDS provision by inserting section 194IA with the current TDS provisions restricted under the Income Tax Act, 1961.
    The difficulty that a buyer may face to implement this TDS provision will be as under:
    Obtaining TAN number for complying with the provisions;
    Issuance of TDS certificate to the seller;
    Filing of TDS return quarterly and mention PAN of the seller;
    Taxes needs to be deposited within the specified time limit with the Government; and
    May be scrutinized by the TDS officer
    Note: It is better to keep in mind that the above rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.

    Originally posted by Krishbharti View Post
    Very right capt yadav. Incidentally, did you see my query about TDS? What is ur opinion?

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    • Re : Spaze Privy Sector 72 Gurgaon

      Tds

      Originally posted by Krishbharti View Post
      Very right capt yadav. Incidentally, did you see my query about TDS? What is ur opinion?
      As many as 4.5-5 lakh homes are expected to be delivered in 2013, according to Property research firms Liases Foras and PropEquity as well as property consultancy CB Richard Ellis.

      The Finance Bill 2013 has proposed that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor. The guiding philosophy of this idea was to ensure property deals are reported, and it was believed that the rule will apply to ready property acquired.

      But officials say the finance bill does not make a distinction between under-construction and ready property.

      "Tax will have to be cut from the total consideration and not balance payment made after the enforcement of the finance act," said an income tax department official.

      According to rules in respect of tax deducted at source, buyers would have to obtain a tax deduction and account number, or TAN, file a return with the tax authorities and also issue a TDS certificate to the seller. Once the tax is deducted, the builder would be able to claim credit for such TDS against its tax liability but the burden of this tax could fall on buyers if cash-starved builders refuse to take the liability on themselves.

      Tax experts say the onerous requirements should be diluted in the case of such buyers and the proposal needs to be clarified. "An individual buyer will be obligated to comply with the withholding tax registration or TAN, tax payment, e-TDS returns, issue of TDS certificate to seller for claiming tax credit unless a simplified mechanism is provided in this direction," said Sunil Jain, partner, J Sagar Associates. There's no clarity even in instances where the purchase is made from borrowed funds and where the property is in joint ownership.

      "It looks at the provision of property ofRs 50 lakh or more, assuming it is a transaction that happens at one go. A large number of transactions are installmentbased and extend over 3-5 years where installments are disbursed directly by banks," said Rahul Garg, leader, direct tax, PwC India.

      The provision would mean that the buyer would be responsible for the deduction of TDS each time an installment is disbursed by the bank unless the responsibility is shifted to the bank.

      Builders see the new TDS as a burden on buyers and have taken up the issue with the finance minister.

      Comment


      • Re : Spaze Privy Sector 72 Gurgaon

        Hi, I am planning to buy 1600 Sq Unit in re-sale and will take home loan,so would request the members of this forum to please advise on the banks which are disbursing loan to this project?
        Last edited May 12 2013, 05:47 PM.

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        • Re : Spaze Privy Sector 72 Gurgaon

          SBI, AXIS, FIRSTBLUE , u can try in others

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          • Re : Spaze Privy Sector 72 Gurgaon

            I think the loan amount will be based on the cheque payment or the builder's price which is around 50 lacs for 1600 sq ft apartment. The registration however will be done at the circle rate which is of the order of rs 4000+ psf. As you are aware, there is a coloured component too which one has to arrange. The current rate for these apartments ( unloaded) is anything between 6200 to 6500 psf and is likely to go up as the possession gets closer.

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            • Re : Spaze Privy Sector 72 Gurgaon

              Friends I don't see any construction update after 26th Dec12. Not able to appreciate how long they will take to give possession. They should not be delaying like unitech if they really want to have some credibility in the market. Hope some one who has recently visited the site will be able to throw some light. Thanks

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              • Re : Spaze Privy Sector 72 Gurgaon

                Originally posted by CaptainYadav View Post
                As many as 4.5-5 lakh homes are expected to be delivered in 2013, according to Property research firms Liases Foras and PropEquity as well as property consultancy CB Richard Ellis.

                The Finance Bill 2013 has proposed that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor. The guiding philosophy of this idea was to ensure property deals are reported, and it was believed that the rule will apply to ready property acquired.

                But officials say the finance bill does not make a distinction between under-construction and ready property.

                "Tax will have to be cut from the total consideration and not balance payment made after the enforcement of the finance act," said an income tax department official.

                According to rules in respect of tax deducted at source, buyers would have to obtain a tax deduction and account number, or TAN, file a return with the tax authorities and also issue a TDS certificate to the seller. Once the tax is deducted, the builder would be able to claim credit for such TDS against its tax liability but the burden of this tax could fall on buyers if cash-starved builders refuse to take the liability on themselves.

                Tax experts say the onerous requirements should be diluted in the case of such buyers and the proposal needs to be clarified. "An individual buyer will be obligated to comply with the withholding tax registration or TAN, tax payment, e-TDS returns, issue of TDS certificate to seller for claiming tax credit unless a simplified mechanism is provided in this direction," said Sunil Jain, partner, J Sagar Associates. There's no clarity even in instances where the purchase is made from borrowed funds and where the property is in joint ownership.

                "It looks at the provision of property ofRs 50 lakh or more, assuming it is a transaction that happens at one go. A large number of transactions are installmentbased and extend over 3-5 years where installments are disbursed directly by banks," said Rahul Garg, leader, direct tax, PwC India.

                The provision would mean that the buyer would be responsible for the deduction of TDS each time an installment is disbursed by the bank unless the responsibility is shifted to the bank.

                Builders see the new TDS as a burden on buyers and have taken up the issue with the finance minister.
                I think govt needs to clarify and notify a comprehensive procedure. Most of the properties now are over rs 50 lac limit and this provision becomes relevant.

                Comment


                • Re : Spaze Privy Sector 72 Gurgaon

                  Someone in my faimly is looking out for options for 1900 sq ft in tower C, D or E. Can anyone suggest an active broker working on this one.

                  I have been meeting a lot of crappy brokers since last couple of days so am extremely fed up of them.

                  Mods - apologies just need some genuine advice not trying to initiate anything to do with buying/selling thru the forum

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                  • Re : Spaze Privy Sector 72 Gurgaon

                    No construction update on spaze privy sec 72 after 26th dec.. What is the latest status friends?

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                    • Re : Spaze Privy Sector 72 Gurgaon

                      Originally posted by Krishbharti View Post
                      No construction update on spaze privy sec 72 after 26th dec.. What is the latest status friends?
                      No body is responding. Lagta hai people have lost interest in this project.

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