New DelhiThere was some doubt in the minds of people about the announcement of 1% TDS on property sale made in the budget this time. According to some reports, the reality is somewhat different from the way people are looking at this rule. Finance Minister Nirmala Sitharaman had said in the budget that 1% TDS will be levied on the purchase and sale of immovable property worth Rs 50 lakh or more.
Now people are thinking that if many people are buying or selling that property together and the personal amount invested by them does not go up to Rs 50 lakh or more, then TDS will not have to be paid. Whereas this is not the case at all. In this way, many people can buy a property together and if their personal investment is less than Rs 50 lakh, then TDS will not be levied on any purchase or sale.
Misinterpretation of the memorandum
Such confusion is happening due to misinterpretation of the memorandum issued by the government. Union Finance Minister Nirmala Sitharaman had also mentioned this in her budget speech. She had said that this confusion is happening due to wrong interpretation of tax regulations. The Finance Minister had talked about making the rules more simple and understandable. What is said in the memorandum means that if the price of the property or its stamp duty value (whichever is higher) is Rs 50 lakh or more, then 1 percent TDS will be deducted on it. This applies to both purchase and sale. This new rule will come into effect from October 1, 2024.
You will get 1 discount
Agricultural land is excluded from this rule. That is, any land which is considered agricultural land will not have to pay TDS on its purchase and sale even if its value is more than Rs 50 lakh. Apart from this, 1 percent TDS will be deducted on buying or selling any kind of immovable property, provided its total value is Rs 50 lakh or more.
Tags: Business news, Property
FIRST PUBLISHED : July 26, 2024, 17:58 IST