| Realty players upbeat over removal of 1% TDS
Finance Minister Pranab Mukherjee's move to withdraw one per cent tax deducted at source (TDS) on transfer of immovable property has brought relief to the real estate industry. Lalit Jain, chairman, Confederation of Real Estate Developers Association of India, said it was a sensible move, as TDS would have created additional administrative costs for the government, without much gain. When asked if one per cent was too big a burden, Jain said though in financial terms, one per cent TDS was meagre, it would have led to administrative havoc, owing to the paperwork and other formalities related to it. On Monday, the finance minister withdrew the tax, saying, "I have received a number of representations pointing out the additional compliance burden this measure would impose. This would've been an additional burden on taxation," he said. "TDS would have generated revenues for the central government, when real estate and land is actually a state subject," said Sunil Dahiya, managing director, Vigneshwara Developers. |
Tuesday 8 May 2012
Realty players upbeat over removal of 1% TDS
