The proposed 1% TDS will come into force from June this year. This proposal included in the Budget 2013, is expected to affect the sales of luxury housing units.
As proposed in the Budget 2013, those who wish to buy homes or apartments over Rs.50 lakh will have to pay an additional 1% TDS to the government. This will make the apartments costlier.
Those who have booked for flats above the price range fixed by the Budget 2013-14, it will be harder as they will have to deduct an amount as TDS from their payment to the builder. Further they will have to pay the tax and file the returns.
According to the reports of top property research firms, around 5 lakh housing units are believed to be delivered this year. As many homes as the number of people; about the same number of people have ordered for flats. All these people will be affected by the new policy. Continue reading