From June 1st 2013 there is change in TDS on transfer of immovable properties. Please suggest how we can handle this or any SAP note for the same.
Consequent to the requirement of compliance of the formality of deducting tax at source on real estate purchase the tax payers would be required to obtain TAN (Tax Deduction Account Number) Number and also perhaps would be required to file the yearly TDS return. Hence, every person after 1st June, 2013 would have to deduct TDS @ 1 % on payments made to the transferor for real estate. In case the property in excess of Rs.50 Lakhs is purchased then such TDS would be required to be deducted at every part payment of consideration which would cause great harassment specially to investors who are not engaged in day to day business activities.