TDS will increase hassle for home buyers
Finance minister has proposed for Tax Deducted at Source (TDS) to all who buys immovable property (other than farm) worth Rs 50 lakh or above in cities and Rs 20 lakh in other areas, must withhold tax of 1% of consideration.
And the buyers should provide the proof of remitting the 1% tax in time of registration of the property.
According to analysts this proposal will introduce the black money into real estate sector.
The analysts also expressed their concerns about the growth of the market. According to them this decision will discourage people in taking purchasing decision.
Also this proposal will create hassles for the salaried individuals. Apart from the TDS, a buyer also needs to pay service tax or value added tax depending on the type of the apartments.
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Source : The Times of India
Budget 2012, Budget and real estate, Real Estate market in india, Registration of property, Service Tax, Tax Deducted at Source (TDS), value added tax
