Government Rolls Back Excise on Gold and TDS on Real Estate

Jewellers and realtors cheer! Government rolled back the proposal of 1% TDS on property sales and 1% excise on gold jewellery. In the announcement of Finance Bill for 2012-13, The Finance Minister said that govt. has decided to withdraw the levy on property sales and gold jewellery after receiving several representations.

In the budget 2012-13, the Finance Minister had proposed to levy TDS on transfer of immovable property (other than agriculture), in a bid to avoid corruption and black money in the property markets. In the proposal it is mentioned that every transferee of the immovable property at the time of making payment for transfer of the property has to deduct tax at the rate of 1% of such sum.

Consequent to the 21 days nation-wide strike by industry bodies from March 17, 2012, The Finance Minister has decided to withdraw the levy (1% excise duty) on all precious gold jewellery both branded or unbranded. The threshold limit for TCS (Tax Collection at Source) on cash purchase of metal jewellery is raised to Rs.5 lakh from the present limit of Rs.2 lakh. However, the threshold limit for cash purchase on bullions is not changed and retained at Rs.2 lakh.

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