Bangalore, Apr 1 (KNN) Confederation of Real Estate Developer's Associations of India (CREDAI), has sought withdrawal of Budget proposal to levy 1 per cent tax deducted at source on any property deal other than agricultural land. 

The realtor’s body said that the implementation of the proposal will lead to more complexities and harassment of consumers, in a recent written representation sent to the finance ministry.  CREDAI is an apex body representing organised real estate developers and builders across the country.
 
"We are seeking withdrawal of this proposal completely. This will lead to harassment of consumers, especially the buyer who is being burdened with additional responsibility to withhold the amount, deposit this to tax authorities and file returns," said Lalit Kumar Jain, chairman, CREDAI. 

Under the proposal made in the Union Budget 2013, the tax is mandated to be paid if the property consideration is over 50 lakh in specified urban areas and 20 lakh in any other area.
 
Further, the transaction would be registered only after the buyer provided proof of deduction and payment of TDS.  The proposal was made effective from June 1, 2013. 

According to Jain, around 80 per cent of realty transactions in top six markets in the country including Mumbai Metropolitan Region, Delhi, Bangalore, Chennai, Pune and Hyderabad would be affected by the proposal, given the current property rates. (KNN)