Budget aims at plugging tax leakages in property deals

Buyer to pay tax on gains made on undervalued property purchase

Buying a property at a price lower than the estimated circle rate is set to become a costly affair now. The fine prints of Budget 2013-14 indicate a clear crackdown on tax leakages in property transactions. Besides imposition of a one per cent tax deducted at source (TDS) on property transactions of more than Rs 50 lakh, the Finance Bill has also proposed to tax additional gains made through buying properties at less than the price on which the stamp duty is required to be paid. The clause has been inserted under the provision "taxability of immovable property received for ...