Budget 2022: For property buyers, right TDS must to avoid interest, penalty

Budget impact may not be palpable, but steer clear of taxman

In the Union Budget for 2022-23, the finance minister proposed that when buying a property, the homebuyer should deduct tax deducted at source (TDS) at the rate of 1 per cent. TDS should be deducted on the amount paid to the seller or the stamp duty value, whichever is higher. This amendment will apply to all non-agricultural, immoveable property, where the selling price or the stamp duty value is above Rs 50 lakh.

Harmonising laws

Section 194IA deals with deduction of TDS on property deals. Vivek Jalan, partner, Tax Connect Advisory Services says, “A few years ago, TDS was made applicable under