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1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

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1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

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  • 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

    1% Tax Deduction (TDS) On Property Sale From 1st October, 2012
    March 16, 2012
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    Tax deducted at source (TDS) on sale of immovable property will be applicable from October 1st, 2012. As per the announcement in budget 2012, w.e.f. 1st October every one making payment against purchase of immovable property (other than agricultural land) shall deduct 1% tax on the total amount if the value of the property is more than Rs 50 lakh in case of urban areas and Rs 20 lakhs in case of other areas.



    Transferee have to make the payment of TDS collected using the challan of payment of TDS.

    To make better compliance of the provision, to get the registration of the property transferee have to generate the proof of deduction of tax and payment of TDS.

    Although transferee need not have a Tax deduction and collection account number (TAN) or to provide and TDS statement against the deduction of tax as in most of the cases this would be one time transaction.

    To make the process of filing TDS simpler for people, a one pager simple challan forms will be provided which will require the details of the property, transferor and transferee.

    Highlights Of TDS On Sale Of Immovable Property

    TDS deduction on sale of property will be effective from October 1st, 2012.
    The rate of TDS on transfer of property will be deducted at the rate of 1%.
    Transferee have to submit the amount of TDS deducted using TDS payment challan before registration of property.
    Property registration will not be done without proof of TDS deduction and payment.
    Transferee will be required to have TAN for the deduction of TDS for transfer of property.
    Government will provide simple TDS payment challan for the payment of TDS deducted by transferee at the time of making payment against property purchase.
    So we can conclude this TDS deduction will take the value of the immovable property up after the implementation of the section 194LLA i.e from 1st October 2012.
  • #2

    #2

    Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

    TDS on property sale

    This seems more an effort to capture transactions than a revenue mopping exercise.

    Comment

    • #3

      #3

      Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

      Originally posted by MS Kumra View Post
      This seems more an effort to capture transactions than a revenue mopping exercise.
      All transactions are captured by the tax dept. because PAN is compulsory. This is for revenue collection as well as discouraging speculation buying in property market. And this collection is equal to or more than brokerage - so no small deal

      Comment

      • #4

        #4

        Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

        Black money ka flow aur badhega...
        People will show lower rates for flats n except more black...
        Plus agar cap gain nahi laga( section 54 ) toh refund lene ka jhanjhat...
        Last edited August 18 2015, 12:08 PM. Reason: Profanity

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        • #5

          #5

          Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

          Only good move in budjet apart from small help for so called affordable housing..

          Originally posted by akash.g View Post
          Black money ka flow aur badhega...
          People will show lower rates for flats n except more black...
          Plus agar cap gain nahi laga( section 54 ) toh refund lene ka jhanjhat...

          F**k you government... I hate you!!!
          Puri of JLL India said that exempting proceeds from the sale of a residential property from capital gains tax if they are invested in equity or equipment of an SME would provide home owners with more reinvestment options

          what are the implication of this..
          means no more looping to settle Long term gain on reinvestment in property..
          this means lots of resale came up in old market in white where people realise the potential of there property and invest in there bussiness expension that to in White...
          i welcome this move
          ur opinion invited....

          good news for those broker who deals in resale particularly delhi/mumbai//

          Comment

          • #6

            #6

            Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

            Originally posted by Rebele003 View Post
            Puri of JLL India said that exempting proceeds from the sale of a residential property from capital gains tax if they are invested in equity or equipment of an SME would provide home owners with more reinvestment options

            what are the implication of this..
            means no more looping to settle Long term gain on reinvestment in property..
            this means lots of resale came up in old market in white where people realise the potential of there property and invest in there bussiness expension that to in White...
            i welcome this move
            ur opinion invited....

            good news for those broker who deals in resale particularly delhi/mumbai//
            I guess most of the money generated from all the scams that have happened during the Congress/UPA rule is invested in real estate.

            Now politicians can sell their properties and invest the capital gains in small companies. Money from sale of properties will simply move into equity of small private limited companies and that too without paying any tax.

            Thus Pranab Mukherjee has provided a path to his fellow leaders of Congress party and have enabled them to encash their investments in real estate without paying any tax. Now these politicians can demand max cheque deals for the properties that they will sell and hold the money in accounts of companies owned/controlled by them.

            This news has nothing to do with any attempt to reduce black money in the country or any genuine business expansion as such. This is yet another scam by Congress party.

            Comment

            • #7

              #7

              Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

              ब्लैक मनी की बुनियाद पर हथौड़ा

              ब्लैक मनी की बुनियाद पर हथौड़ा
              29 Mar 2012, 1641 hrs IST, इकनॉमिक टाइम्स


              दीपशिखा सिकरवार & रवि तेजा शर्मा नई दिल्ली

              सरकार ने रियल एस्टेट सौदों में काले धन के इस्तेमाल पर अंकुश लगाने के लिए बजट में प्रस्ताव किया है कि तय सीमा से ज्यादा के प्रॉपर्टी सौदों पर 1 फीसदी टीडीएस (स्त्रोत पर कर कटौती) लगाया जाए। अब वह कुछ और कड़े नियमों के बारे में सोच रही है, ताकि इस नियम को असरदार तरीके से लागू किया जा सके।

              वित्त मंत्रालय प्रॉपर्टी के रजिस्ट्रेशन के वक्त मकान और जमीन खरीदने वालों के लिए टैक्स सटिर्फिकेट या चालान पेश करना अनिवार्य बनाने के बारे में सोच रहा है। वित्त मंत्रालय के एक अधिकारी ने कहा, 'अक्टूबर से खरीदारों को अपनी प्रॉपर्टी का रजिस्ट्रेशन कराने के वक्त इनकम टैक्स चालान दिखाना होगा।'

              बजट में प्रस्ताव किया गया था कि अगर प्रॉपर्टी की वैल्यू मेट्रो शहरों में 50 लाख रुपए से ज्यादा और अन्य शहरों में 20 लाख रुपए है, तो खरीदार, बेचने वाले को दी जाने वाली राशि के 1 फीसदी पर कर छूट का दावा कर सकेगा। इनकम टैक्स लगाने के लिए प्रॉपर्टी की वैल्यू वही मानी जाएगी, तो स्टाम्प ड्यूटी के भुगतान के वक्त आंकी गई।

              अधिकारी ने बताया कि बेचने वाला एक पन्ने के फॉर्म के आधार पर खरीदार की ओर से टैक्स कटौती पर क्रेडिट क्लेम कर सकेगा। इसे वित्त विधेयक के पारित होने के बाद अधिसूचित कर दिया जाएगा। लॉन्ग टर्म कैपिटल गेन टैक्स 10 फीसदी की दर से लगेगा। खरीदारों को इस फॉर्म में प्रॉपर्टी, अपने और बेचने वाले के बारे में प्रासंगिक ब्योरा देना होगा। टैक्स एक्सपर्ट्स का कहना है कि नियमों के पालन से जुडे़ झंझट से बचने के लिए अगले छह महीने में प्रॉपर्टी बेचने की जल्दबाजी देखने को मिल सकती है।

              डेलॉइट, हास्किंस एंड सेल्स के पार्टनर होमी मिस्त्री ने कहा, 'खरीदारों के पास कम्प्लायंस से जुड़े अवरोधों से बचने के लिए छह महीने का विंडो है।' सरकार ऐसी डील पर कुछ राहत दे सकती है, जो अक्टूबर से पहले होंगी, भले उनका रजिस्ट्रेशन बाद में हो। टैक्स विभाग के अधिकारियों का कहना है कि रेवेन्यू से कहीं ज्यादा नया सिस्टम प्रॉपर्टी डील को इनकम टैक्स विभाग के राडार पर ले आएगा। अधिकारी ने नाम न छापने की शर्त पर बताया, 'नया टैक्स सिस्टम प्रॉपर्टी डील पर इनकम टैक्स विभाग को जानकारी का नियमित प्रवाह मुहैया कराएगा, जो बड़े पैमाने पर कैश ट्रांजैक्शन का गवाह बनती हैं।'

              रियल एस्टेट को काले धन के सृजन और उसके इस्तेमाल के सबसे प्रमुख तरीके के रूप में लिया जाता है। कुछ अनुमानों के मुताबिक जमीन और प्रॉपर्टी के सौदों में कैश कम्पोनेंट 60 फीसदी तक हो सकता है।
              Last edited March 29 2012, 10:03 PM.

              Comment

              • #8

                #8

                Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

                Government rolls back 1% TDS on property sales

                NEW DELHI: The government on Monday rolled back the proposed one percent tax deduction at source (TDS) on transfer of immovable property.

                Initiating the debate on the Finance Bill for 2012-13 in the Lok Sabha, Finance Minister Pranab Mukherjee said the government had decided to roll back the levy after receiving various representations.

                "The Finance Bill proposes that every transferee of immovable property (other than agricultural land), at the time of making payment for transfer of the property, shall deduct tax at the rate of 1 percent of such sum," Mukherjee said.

                "I have received a number of representations pointing out the additional compliance burden this measure would impose. I, therefore, propose to withdraw this provision for levy of TDS on transfer of immovable property," he added.

                In the budget for financial year 2012-13 presented March 16, the finance minister had proposed to levy TDS on transfer of immovable property, in a bid to tighten screw on corruption and black money in the property markets.

                Bowing to pressure, Finance Minister Pranab Mukherjee today announced a slew of measures to provide relief to the jewellery sector and postponed implementation of the general anti-avoidance rules (GAAR) by one year, but offered no concessions to Vodafone involved in tax dispute.

                Moving the Finance Bill, 2012 for consideration and passage in the Lok Sabha, Mukherjee halved the capital gains tax for private equity investors to 10 per cent and relaxed the norms for arrest of persons involved in violation of Customs Act.

                "The government has decided to withdraw the levy (one per cent excise duty) on all precious metal jewellery, branded or unbranded, with effect from March 17, 2012," he announced, bowing to demand within and outside the House.

                He said the threshold limit for TCS (tax collection at source) on cash purchase of jewellery will be raised to Rs 5 lakh from the present Rs 2 lakh.

                However, the Minister said, the threshold limit for cash purchase on bullion will be retained at Rs 2 lakh. Bullion will not include any coin or other article weighing 10 gm or less, he added, setting the tone for the debate on the crucial bill.



                Government rolls back 1% TDS on property sales-Tax News-Tax Savers-Personal Finance-The Economic Times on Mobile
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                Comment

                • #9

                  #9

                  Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

                  Originally posted by MANOJa View Post
                  NEW DELHI: The government on Monday rolled back the proposed one percent tax deduction at source (TDS) on transfer of immovable property.

                  Initiating the debate on the Finance Bill for 2012-13 in the Lok Sabha, Finance Minister Pranab Mukherjee said the government had decided to roll back the levy after receiving various representations.

                  "The Finance Bill proposes that every transferee of immovable property (other than agricultural land), at the time of making payment for transfer of the property, shall deduct tax at the rate of 1 percent of such sum," Mukherjee said.

                  "I have received a number of representations pointing out the additional compliance burden this measure would impose. I, therefore, propose to withdraw this provision for levy of TDS on transfer of immovable property," he added.

                  In the budget for financial year 2012-13 presented March 16, the finance minister had proposed to levy TDS on transfer of immovable property, in a bid to tighten screw on corruption and black money in the property markets.

                  Bowing to pressure, Finance Minister Pranab Mukherjee today announced a slew of measures to provide relief to the jewellery sector and postponed implementation of the general anti-avoidance rules (GAAR) by one year, but offered no concessions to Vodafone involved in tax dispute.

                  Moving the Finance Bill, 2012 for consideration and passage in the Lok Sabha, Mukherjee halved the capital gains tax for private equity investors to 10 per cent and relaxed the norms for arrest of persons involved in violation of Customs Act.

                  "The government has decided to withdraw the levy (one per cent excise duty) on all precious metal jewellery, branded or unbranded, with effect from March 17, 2012," he announced, bowing to demand within and outside the House.

                  He said the threshold limit for TCS (tax collection at source) on cash purchase of jewellery will be raised to Rs 5 lakh from the present Rs 2 lakh.

                  However, the Minister said, the threshold limit for cash purchase on bullion will be retained at Rs 2 lakh. Bullion will not include any coin or other article weighing 10 gm or less, he added, setting the tone for the debate on the crucial bill.



                  Government rolls back 1% TDS on property sales-Tax News-Tax Savers-Personal Finance-The Economic Times on
                  Thanks manojA bhai Sab,
                  Your news saved me lot as well my money.
                  Always want to hear/read this type of news from you.

                  Still bloody Service tax????

                  Comment

                  • #10

                    #10

                    Re : 1% Tax Deduction (TDS) On Property Sale From 1st October, 2012

                    Wah Manoj bhai, kya khabar nikaal kar laaye ho!

                    Aaj ki haseen shaam, aapke naam!

                    Comment

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