Immovable Property transaction: TDS of 1% to be levied on transactions above Rs 50 lakh
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  • Govt also taking cues from the builders

    Triple whammy for the seller -

    transfer charges to the builder
    brokrage to the broker
    and now..
    brokrage to the government as well.
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  • Further Pain !!!!
    Service Tax Abatement rate cut (from 75% to 70%) for homes valued over Rs 1 cr or those with carpet area of over 2000 sqft, high end property cost to rise
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  • Total shit by govt...
    how does this 1% makes sense if they are earning short term & long term capital gains...... this will encourage more cash transactions, instead of putting a stop on black money trading, by taking such steps dnt know what they are trying to prove...
    govt is just trying to make money from every nook and corner possible....
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  • This TDS is will be applicable from 1st April, 2013.
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  • This TDS will be chargeable to the seller on the income received. The buyer will have to issue a Form 16 to the seller with the tax credited. The procedure is cumbersome and every transaction above 50 lacs will involve a CA.
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  • It will be WITHDRAWN like last year
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  • Don't think it'll be withdrawn
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  • There is a huge difference in last year and this year announcement. Last year, complete TDS was supposed to be deducted and deposited. But this year only 1% need to be deposited as TDS and other amount will be paid by the seller himself in case of short term capital gain.

    For long term capital gain, 1% will be deducted as TDS but will be refundable when you show that the complete amount has been re-invested in immovable property.

    So, both ways you need to file something with the IT Dept.

    This step has been devised to bring transparency in property transactions.

    Originally Posted by ADIT11983
    It will be WITHDRAWN like last year
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  • where did you get this difference from?

    Originally Posted by jollyboy
    There is a huge difference in last year and this year announcement. Last year, complete TDS was supposed to be deducted and deposited. But this year only 1% need to be deposited as TDS and other amount will be paid by the seller himself in case of short term capital gain.

    For long term capital gain, 1% will be deducted as TDS but will be refundable when you show that the complete amount has been re-invested in immovable property.

    So, both ways you need to file something with the IT Dept.

    This step has been devised to bring transparency in property transactions.
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  • I understand this from my previous transaction. You will be clear about all this once it is published in IT law books.

    Originally Posted by gupta1
    where did you get this difference from?
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  • jo 50 lakh laayega usse 50 hazaar ki tension nahi hoti ... i think the step to increase tax rebate on home loan interest from 1.5 l to 2.5 l and increased rebate of 100K for loans (first one) below 25L will help taking real estate roots to tier 2/3 city (bigger towns we don't have cities in INDIA :D ) and don't dare to translate I am pro-congress :D
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  • Originally Posted by sellerno007
    jo 50 lakh laayega usse 50 hazaar ki tension nahi hoti ... i think the step to increase tax rebate on home loan interest from 1.5 l to 2.5 l and increased rebate of 100K for loans (first one) below 25L will help taking real estate roots to tier 2/3 city (bigger towns we don't have cities in INDIA :D ) and don't dare to translate I am pro-congress :D



    The tax rebate on home loan interest has NOT been increased from 1.5 Lac to 2.5 Lac. The 1 Lac additional to 1.5 Lac is only for first loan below 25 Lacs. So, for existing loan holders there is no benefit
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  • TDS will be paid by the buyer.

    If he buys property worth 1 crore, he will have to deposit 1% i.e 1 Lakh with the govt and rest 99 Lakhs he will pay to the seller along with a TDS certificate.

    Seller can get back the 1 Lakh by filing the proper paper work. If he does not, the govt can come after him because the transaction has to be declared to the govt. with PAN numbers of both parties.

    Buyer will be able to register the property only after he has filed the TDS with the govt.
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  • in my opinion, it will only increase black part in all property transactions. govt, indirectly is increasing B money in the system and provoking people to hide actual deal amount.
    ridiculous move
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  • If circle rate or builder price is above 50L, how will you avoid it?

    Is it only for plots or also for flats?

    What about underconstruction flats?
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