By Accommodation Times News Service
The additional 1% TDS implemented on the properties costing more than Rs. 50 lakh, which was declared during the budget 2013-2014, is getting implemented from 1st June 2013. As per the new tax amendment properties registered after 1st June will be levied by 1% TDS. Hence, property buyers still have four days in their hand if they want to purchase property on cheap rates. In this year’s budget for the financial year 2013-2014, a new section was added in the Income Tax Rules 1962, according to which 1% TDS is applicable on costlier properties. This rule is not applicable on rural area’s agricultural land and on land acquisition.
According to an official of Central Board of Direct Taxes (CBDT), to increase the support to Income Tax department, 1% TDS was made applicable on properties purchased this year and now it’s time to apply the new rule. As it is made applicable from next month all the authorities of the various areas are instructed to inform all the property registration departments under their area, about the new amendment and they will have to verify the property registry on daily basis, in order to supervise each and every transaction carried out.
The transactions on properties costing less than 50 lakh, the properties in rural areas and agricultural land is exempted by this new rule. Even, if rural land and rural agricultural land is costing more than 50 lakh they are exempted, in order to provide affordable housing for the lower income group and middle income group people and provide cheap agricultural lands. Whereas, property acquired through land acquisition land act is also exempted, aiming that land utilized for public utility services should not be costlier, because of such implementations.