Confederation of Real
Estate Developer's Associations of India (CREDAI), has sought withdrawal of
Union Budget 2013-14 proposal to levy 1 % tax deducted at source (TDS) on any
property deal other than agriculture land.
In a recent
representation sent to the finance ministry, the real estate body has argued
that implementation of this proposal will lead to more complexities &
harassment of consumers. (Property buyers and Sellers)
Mr.Lalit Kumar Jain, chairman, CREDAI said,
"We are seeking withdrawal of this proposal completely. This will lead to
harassment of consumers, especially the buyer who is being burdened with
additional responsibility to withhold the amount, deposit this to tax
authorities and file returns"
CREDAI, the apex body
representing organised real estate developers & builders across India, has
sent a written representation to the finance ministry in this regard.
Under the
proposal, the tax is mandated to be paid if the property consideration is above
Rs. 50 lakh in specified urban areas and
Rs. 20 lakh in any other area.
The transaction will
be registered only after the buyer provides proof of deduction & payment of
TDS. The proposal will be effective from June 1, 2013.
According to Mr.
Jain, about 80 % of realty transactions in top 6 markets in the country
including Mumbai Metropolitan Region, Delhi, Bangalore, Chennai, Pune and
Hyderabad will be affected by the proposal, given the current property rates.
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