From 1st october tds applicable on property sale

Tax queries 3353 views 4 replies

 

Yet another blow on the Real Estate Sector:

Starting from 1st October 2012 all transferee are required to deduct 1% TDS on the amount of Net Consideration or on the value adopted by the Govt. for the payment of Stamp Duty, where any of the said value exceed Rs. 50 Lakhs in Urban areas and Rs. 20 Lakhs in other areas failing which the Sub-registrar of assurance shall not register the said transaction.

 

In absence of clarification it is interpreted that the same shall apply in case of a resale property as well as property booked or purchased from the Builders as well.

Replies (4)

This is the erstwhile Section 230A in a new garb. 

All sale of immovable properties having value above 50lacs (urban) and 20lacs (others) will attract TDS of 1%. (not for agricultural land)

The registration of sale deed cannot be completed without furnishing TDS payment challan to the registrar officer.

No need for TAN number or filing of TDS returns.

 

Yes you got it absolutely right? read this article.

 

https://www.chsguru.com/2012/03/buyers-beware-tds-is-being-made.html

 

The govt should really reconsider this one & enhance this limit to maybe for transactions Rs. 1 Crore & above.


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