Did the Budget announcements on tax deduction at source (TDS) on sale of property and gold jewellery leave you tense? You can breathe easy now.
The government has rolled back the proposed TDS levy on sale of immovable properties (other than agricultural land). According to the proposal, buyers making payment for a property had to deduct tax at 1 per cent of the amount and deposit it with the tax authorities.
The TDS was applicable for all properties valued above Rs 50 lakh in urban areas and over Rs 20 lakh in other areas. The proposal was slated for implementation from 1 October this year.
The government has also revised the proposal for levying TDS on purchase of gold jewellery and bullion through cash payments. Gold jewellery will be subject to 1 per cent TDS if the payment is made in cash and exceeds Rs 5 lakh, irrespective of whether the buyer is a trader or a consumer. This will include coins and other articles weighing 10g or less.
According to the Budget proposal, the tax was to be levied on all cash purchases exceeding Rs 2 lakh.
The threshold limit for the levy on cash purchase of bullion has been left unaltered at Rs 2 lakh. The norms were proposed to check unaccounted money in real estate and jewellery.
The government has also withdrawn its proposal to levy an excise duty (1 per cent) on branded and unbranded gold jewellery with effect from 17 March 2012. The proposal to levy excise duty was opposed by bullion merchants and jewellers.
[“source-businesstoday”]
