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Realtor Body Against Budget Proposal Of 1% TDS On Property Deals
Economic Times [ 01-04-2013 ]

MUMBAI, BANGALORE: Confederation of Real Estate Developer's Associations of India (CREDAI), has sought withdrawal of Budget proposal to levy 1% tax deducted at source on any property deal other than agriculture land.

In a recent representation sent to the finance ministry, the realtors' body has argued that implementation of this proposal will lead to more complexities and harassment of consumers. "We are seeking withdrawal of this proposal completely. This will lead to harassment of consumers, especially the buyer who is being burdened with additional responsibility to withhold the amount, deposit this to tax authorities and file returns," said Lalit Kumar Jain, chairman, CREDAI.

CREDAI, the apex body representing organised real estate developers and builders across the country, has sent a written representation to the finance ministry in this regard. Under the proposal, the tax is mandated to be paid if the property consideration is over 50 lakh in specified urban areas and 20 lakh in any other area. The transaction will be registered only after the buyer provides proof of deduction and payment of TDS. The proposal will be effective from June 1, 2013.

According to Jain, around 80% of realty transactions in top six markets in the country including Mumbai Metropolitan Region, Delhi, Bangalore, Chennai, Pune and Hyderabad will be affected by the proposal, given the current property rates.

 
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