TDS on Immovable Property : Union Budget

By Accommodation Times Bureau

By Dr Sanjay Chaturvedi

Tax Deducted on Source will haunt the property transactions. Union Budget pranounced by Finance Minister today will have very bad effect on property transactions. The onus will be on seller. If he do not have PAN card, he will have to pay 20% from the hands of purchaser which will directly deduct the TDS and pay in the treasury.

Second second sale of properties will have much bad effect since claiming of refunds from Income Tax department and these 10% are large sum of money. If a person want to purchase Tax Saving Bonds under 54EC, the fund locked with Income Tax department will not be made available within the period of his gestation period.

In a first cut of the Budget, it is given to understand that associations and corporates or person responsible to deduct TDS has to do so even to pay sale proceeds to builders and first time property sale.

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