Current Affairs-Indian Government's Union Budget 2013-14: TDS at the Rate of 1 Percent Applied on the Value of Transfer of Immovable Property Exceeding Rs.50 Lakh

TDS at the Rate of 1 Percent Applied on the Value of Transfer of Immovable Property Exceeding Rs.50 Lakh

The Finance Bill 2013-14 proposes levy of TDS at the rate of 1 percent on the value of the transfer of immovable property where the consideration exceeds Rs.50 lakh. However, agricultural land will be exempt. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that transactions in immovable properties are usually undervalued and under-reported. One half of the transactions do not carry the PAN of the parties concerned. The Finance Minister said that the proposal to apply TDS was aimed at improving the reporting of such transactions and the taxation of capital gains.