Budget 2024 News Updates: If you are planning to invest in property or sell your properties, then you must know some important changes made in Budget 2024-25. Union Finance Minister Nirmala Sitharaman in her budget speech on Tuesday (July 23) said that tax of one per cent on sale of immovable property worth Rs 50 lakh or more will be TDS (Tax deducted at source) Even if multiple buyers and sellers are involved in the transaction. Amidst cases of misinterpretation of tax provisions, the Finance Minister tried to clarify the situation in this regard in his budget speech.
The government said TDS at the rate of one per cent will be applicable for transfer of immovable property worth more than Rs 50 lakh involving multiple sellers or buyers. The Finance Minister mentioned the provision of TDS on sale of immovable property in his budget speech. According to the budget document, Section 194-IA of the Act provides for tax deduction on payments made for transfer of immovable properties other than agricultural land.
This section will be amended to make this clear. The amendments made in this regard will be effective from October 1. “It is proposed to clarify that in case there is more than one seller or buyer in respect of an immovable property, the payment will be the sum of the amount paid to all the sellers,” Sitharaman said, according to PTI.
As per legal provisions, a buyer is responsible to deduct TDS on the amount paid to the seller for transfer of immovable property. In the budget document, the government has proposed to amend sub-section (2) of section 194-IA to clarify that where there is more than one buyer or seller of an immovable property, the total amount paid for the transfer of the immovable property The amount will be considered its value.
Relief will be available on purchasing property in women’s name
Finance Minister Nirmala Sitharaman said the government will consider reducing fees on purchase of residential properties by women and making it a mandatory component of urban development plans. Presenting the budget for fiscal year 2024-25, Sitharaman said the government will encourage states to reduce charges for properties purchased by women.
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“We would encourage states that continue to charge high stamp duty to reduce rates for all and also consider further reducing the duty for properties purchased by women,” she said in her budget speech This reform will be made an essential component of urban development plans.” Along with this, the Finance Minister also proposed to stop mentioning Aadhaar Enrollment Identity in place of Aadhaar number for taxation purposes.