Budget: 1pc TDS on transfer value of immovable property
New Delhi, Feb 28 : The Finance Bill 2013-14 has proposed 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 on Thursday, Union Finance Minister 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.