1% TDS withdrawn on immovable property deals

On this Monday, the Finance Minister Pranab Mukherjee has announced the withdrawal of 1% TDS on immovable property deals. He said” 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% of such sum. 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.”

“As far as withdrawal of TDS on immovable property is concerned it is a welcome move and will generate positive sentiments. We are glad that the government rolled back the 1% TDS proposal on immovable properties. This has decreased the burden of the buyer who had to deduct the amount and submit it with the tax authorities. The roll back of the TDS will make the buyer easily accessible for a property transaction. Earlier the entire procedure of the TDS was complicated as the buyer had to provide personal details along with the property details and mentioning of the seller in the tax deduction form”, Ravi Saund, COO, CHD Developers Ltd. said.

Similarly, MCHI-CREDAI also welcomed the move Finance Minister Mr. Pranab Mukherjee’s decision to withdraw TDS on immovable property. This will help generate positive trends, though in a limited way, in the real estate market, said Paras Gundecha, President – MCHI-CREDAI.

Gundecha also urged the Finance Minister to take much more pragmatic steps like easy loans at concessional rates of interest for home buyers to help revive buying trends in the industry. Real Estate contributes handsomely to GDP and it is vital for the economic growth, he added.

By Accommodation Times Bureau