Page 28 - Union Budget_2019

Union Budget 2019

5.7 TDS at the time of purchase of immovable property

Section 194-IA provides for levy of TDS at the rate of 1% on consideration paid or credited for transfer of
any immovable property other than agricultural land, if the consideration is Rs. 50 lakhs or more.

The term "consideration for immovable property" is not defined in the section. Thus, it is proposed to
amend the Explanation to define "consideration for immovable property" to include all charges of the nature

of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any
other charges of similar nature, which are incidental to transfer of the immovable property

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This amendment will take effect from 1 September, 2019.
The proposed amendment was expected as these payments were made to the seller under the
arrangement for the same property and shall further increase the tax base for the Government

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