Budget 2024 - How Will the New 1% TDS Rule Impact Property Purchases Over INR 50 Lakhs?

Mumbai:

Starting October 1, 2024, a 1% TDS will be applicable on the purchase price or stamp duty value (whichever is higher) of immovable property worth over INR 50 lakhs, even with multiple buyers or sellers involved.

This rule, introduced in Budget 2024, includes cases where each buyer's contribution is less than INR 50 lakhs.

Key Points:

• Applicability: The 1% TDS applies to the total purchase price or stamp duty value.
• Multiple Buyers: TDS applies even if individual contributions are below INR 50 lakhs.
• Multiple Sellers: The same rule applies to transactions involving multiple sellers.
• Effective Date: The amendment takes effect from October 1, 2024.

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