Home buyers in Bangalore

Q: Do the home buyers who are buying luxury homes have to pay hefty taxes?

Nakul Sachdev, Bangalore

14th March 2013

Property Tax in Bangalore

property tax

property buyers

luxury homes

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Unless a simplified mechanism is provided, buyers will have to comply with the withholding tax registration or TAN, tax payment, e-TDS returns, issue of TDS certificate to seller in order to claim tax credit unless a simplified mechanism is provided in this direction, said an expert.The transaction of the provision of property of Rs 50 lakhs and more has to happen at one go. As large number of transactions are installment based and extend over 3-5 years where installments are disbursed directly by banks. The provision says that the home buyers will be solely responsible for the TDS deduction each time the bank pays out installment until the bank takes over the responsibility. Moreover, developers think that the deduction on TDS will be a burden on home buyers shoulder and so they have taken the issue to the finance minister.

Manjula Rao, Bangalore

18th March 2013

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An income tax department official said that, tax will have to be cut from the total consideration and no balance payment has to be made after the enforcement of the finance act. As per the rules regarding tax deduction, property purchasers have to take a tax deduction and account number from the tax authority to file a return and they need to issue a TDS certificate to the seller. After the deduction on taxes, real estate developers can claim credit on such TDS against its tax liability. But the home buyers have to be careful as the tax burden can fall on their shoulders, in case if the cash-strapped developers failed to take any liabilities.

Sreya Khan, Bangalore

18th March 2013

Comment

As per the new Finance Bill 2013, property buyers of an immovable property, other than agricultural land, worth more than Rs 50 lakhs, has to pay taxes at the rate of 1 percent from the consideration payable to a resident seller. this is to ensure that the property deals are reported and the same rule is applicable for buyers who are booking ready properties in India.

Anusua Pillai, Bangalore

18th March 2013

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So hereafter, the property buyers will have to pay one percent of the deal value as tax which will be applicable after June 1.According to a property research firm, lakhs of people are expected to get the possession of their flats in 2013, which means that lakhs of homes are likely to be delivered in this year.

Mritunjoy Deb,

15th March 2013

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Buyers Alert! Home buyers in India will have to think twice before buying luxury homes with price tags of over Rs 50 lakh.The home buyers who have already booked under construction apartments that cost over Rs 50 lakh will have to pay one percent tax deducted at source (TDS) and this tax burden is expected to come into effect from this June.

Saran,

15th March 2013

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