Union Budget: 1% TDS will be levied on selling property worth more than Rs 50 lakh, new rule announced

Budget 2024 News Updates: If you are planning to invest in property or sell your properties, then you must know some important changes made in Budget 2024-25.

Union Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday (July 23) that one per cent TDS (Tax deducted at source) will be levied on the sale of immovable property worth Rs 50 lakh or more, even if the transaction involves multiple buyers and sellers.

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Amid cases of misinterpretation of tax provisions, the Finance Minister tried to clarify the situation in this regard in her budget speech.

The government said that TDS at the rate of one per cent will be applicable for transfer of immovable property worth more than Rs 50 lakh involving multiple sellers or buyers. The Finance Minister mentioned the provision of TDS on sale of immovable property in his budget speech. According to the budget document, section 194-IA of the Act provides for tax deduction on payment made for transfer of immovable property other than agricultural land.

This section will be amended to make it clear. The amendments made in this regard will be effective from October 1. According to PTI, Sitharaman said, “It is proposed to clarify that in case there is more than one seller or buyer in respect of an immovable property, the payment will be the aggregate of the amount paid to all the sellers.”

Also Read: HDFC Bank has increased the interest rates on FDs for this period. Details

As per legal provisions, a buyer is responsible to deduct TDS on the amount paid to a seller for the transfer of immovable property. In the Budget document, the government has proposed to amend sub-section (2) of section 194-IA to clarify that if there is more than one buyer or seller of an immovable property, the aggregate amount paid for the transfer of the immovable property shall be deemed to be its value.

Relief will be given on buying property in the name of women

Finance Minister Nirmala Sitharaman said the government will consider reducing the fee on women purchasing residential properties and making it a mandatory component of urban development schemes. Presenting the budget for the financial year 2024-25, Sitharaman said the government will encourage states to reduce the fee for properties bought by women.

In his budget speech, he said, “We will encourage states that continue to charge high stamp duty to reduce the rates for all and also consider further reducing the duty for properties bought by women. This reform will be made a mandatory component of urban development plans.” Along with this, the Finance Minister also proposed to stop mentioning Aadhaar enrollment identity in place of Aadhaar number for taxation purposes.

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