Budget 2013 has proposed an increase in Tax deduction at source (TDS) rate by 1%. The revised TDS will be in force from June 2013.
Slapping on the top earners, who demand for luxury housing units, Budget 2013 has proposed a revision of TDS by 1%. However the new revised TDS will be into force from June onward.
From June onward, the houses of Rs.50 lakh and above will become costlier ever. The buyers will have to reduce 1% of tax before they pay the amount to the builders. It means that the buyers will be all the more troubled by the revised TDS plan.
Those who have booked flats or apartments which cost over Rs.50 lakh will have to be cautious. The flats and apartments are to be costlier. Moreover they will have to pay the tax to the government before they pay the amount to the builders.
The new proposal to increase TDS by 1% will affect the sales of luxury housing units. The apartments are expected to be costlier with this new proposal.
The prospective buyers, who have booked flats, will be troubled as they will have to file the tax returns after paying the TDS. It really hits them. In fact the buyers would be the ones who are affected more.
A top property research firms reported that nearly 5 lakh housing units are to be delivered this year. It shows that these many people will be affected by the proposed revision of TDS.
As per the new policy, anyone who buys an immovable property worth over Rs.50 lakh, will have to pay an additional 1% TDS. Sole thing excluded from the TDS –list is agricultural land. In short apart from agricultural land, all properties worth Rs.50 lakh or above will invite an additional payment of 1% TDS. The new policy will make all property deals more transparent making all property deals registered and recorded.
