TDS on sale of house property over Rs 50 lakh cannot be avoided in Budget 2024 😮

Understanding the Impact of Budget 2024 on TDS for Property Transactions 🏠

The recent Budget for this year has introduced new regulations regarding Tax Deducted at Source (TDS) on the sale of house property transactions. It is essential for you, as a cryptocurrency investor, to be aware of these changes to ensure compliance and avoid any potential penalties. Here is a breakdown of what Budget 2024 entails for TDS on property transactions:

New Guidelines for TDS on Property Transactions 📜

The aggregate amount paid for purchasing a house property will now be considered for determining the limit for deduction of TDS on the sale of house property.
Clarification that the consideration shall be the aggregate of the amounts paid by all transferees to the transferor for the transfer of the immovable property.
TDS under Section 194-IA will be applicable if the total sale consideration or stamp duty value of the property exceeds Rs 50 lakh, regardless of the number of buyers/sellers involved.

Explanation with an Example 📊

Suppose two buyers purchase an immovable property worth INR 80 lakh, with each becoming a 50% owner.
Both buyers will be required to deduct TDS at 1% on the amount payable by them, even if each buyer’s amount payable is Rs 40 lakh.
The total value of the property, not individual buyer’s payment liability, determines the applicability of TDS under Section 194-IA.

Key Points from Budget 2024 📌

Sub-section (1) of Section 194-IA mandates the deduction of one percent of the sum paid as consideration for the transfer of property as income tax.
No tax deduction is required if the consideration for the transfer and stamp duty value of the property are both less than Rs 50 lakh.
The amendments will be effective from October 1, 2024.

Hot Take: Stay Informed and Compliant with TDS Regulations 🚀

As a crypto investor, staying informed about regulatory changes like the ones introduced in Budget 2024 is crucial to avoid any potential legal issues. Make sure to understand the updated TDS guidelines for property transactions to ensure compliance and peace of mind in your investment ventures. Stay tuned for more updates on financial regulations impacting the crypto world!