Finance Minister recently announced the withdrawal of 1% Tax Deduction at Source (TDS) on transfer of immovable property.
According to the Finance Bill passed during the 2012-13 budget, finance minister had proposed deduction of 1% TDS during sale of every immovable property other than agricultural lands. During that time it was mentioned by that the provision was made to deter the generation and use of unaccounted money in realty market.
Without this withdrawal the proposal would have increased the compliance burden on the part of the buyer, who would have had to deduct the amount and then submit it with the tax authorities. It would have also increased complexity of a property transaction by making it complex to the buyer.
Many industry experts welcomed the move saying that the withdrawal will generate positive trends in the real estate market.
Source: The Economic Times