1. Home
  2. Infrastructure Urban
  3. ECONOMY & POLICY
  4. TDS relief proposal on property sold for recoveries in review
TDS relief proposal on property sold for recoveries in review
ECONOMY & POLICY

TDS relief proposal on property sold for recoveries in review

19 Jan 2023 2 Min Read CW Team
The banks' proposal to exempt the sale of immovable property mortgaged to lenders for the purpose of recovering bad loans through auction from tax deducted at source, or TDS, is currently under consideration by the government.

If the consideration for the transfer of an immovable property is greater than 5 million, Section 194-IA of the Income Tax Act stipulates that TDS must be deducted at a rate of 1 per cent from that amount. Lenders have argued to the government that such sales should not be subject to TDS.

"Banks have argued that this causes a loss of one percent of the property's sale value during recovery." An official who was aware of the discussions stated, "The matter is under consideration." According to the banks, the loan defaulter is claiming a benefit equal to one percent of the property's sale price, citing the TDS, and they want this corrected.

According to the most recent data, scheduled commercial banks have referred 105,000 and 57,331 (provisional) cases under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act for FY 2019-20 and 2020-21, respectively. Experts say that this situation, in which the defaulter appears to benefit, is an unintended consequence of the way current laws are written about how seized properties are transferred or sold by financial institutions, such as banks.

The banks' proposal to exempt the sale of immovable property mortgaged to lenders for the purpose of recovering bad loans through auction from tax deducted at source, or TDS, is currently under consideration by the government. If the consideration for the transfer of an immovable property is greater than 5 million, Section 194-IA of the Income Tax Act stipulates that TDS must be deducted at a rate of 1 per cent from that amount. Lenders have argued to the government that such sales should not be subject to TDS. Banks have argued that this causes a loss of one percent of the property's sale value during recovery. An official who was aware of the discussions stated, The matter is under consideration. According to the banks, the loan defaulter is claiming a benefit equal to one percent of the property's sale price, citing the TDS, and they want this corrected. According to the most recent data, scheduled commercial banks have referred 105,000 and 57,331 (provisional) cases under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act for FY 2019-20 and 2020-21, respectively. Experts say that this situation, in which the defaulter appears to benefit, is an unintended consequence of the way current laws are written about how seized properties are transferred or sold by financial institutions, such as banks.

Next Story
Infrastructure Transport
05 Nov 2024

Unified railway app for tickets and tracking launching in December

The Indian Railways is expected to launch a super app consolidating passenger services by the end of December, according to officials familiar with the project. The app, which is being developed by the Centre for Railway Information Systems (CRIS), will integrate with the Indian Railway Catering and Tourism Corporation (IRCTC), these officials stated. IRCTC would continue to serve as the interface between CRIS and passengers purchasing train tickets, and that integration between the super app and IRCTC is currently underway. The app will provide a wide range of services, including booking p..

Read More
Next Story
Infrastructure Urban
05 Nov 2024

TN drives distributed growth vision with multiple new projects

Tamil Nadu is advancing on its plan to achieve comprehensive growth, launching numerous projects across business sectors with a focus on tier-2 and tier-3 cities. Soon after taking office in May 2021, Chief Minister M.K. Stalin emphasised his government’s commitment to developing both metro and smaller cities to drive industrial growth across the state. The industries department highlighted its focus on creating high-quality, well-paying jobs across Tamil Nadu by establishing various manufacturing facilities, including automobile plants, mini TIDEL Parks, and State Industries Promotion Corp..

Read More
Next Story
Infrastructure Energy
05 Nov 2024

India's power consumption slightly up to 140.4 billion units in October

India's power consumption experienced a slight increase of about one per cent, reaching 140.47 billion units (BU) in October, compared to the same period last year. This growth was primarily attributed to a high base effect. In October of the previous year, power consumption had surged by over 22 per cent to 139.44 BU from 113.94 BU in October 2022. The maximum daily supply, or peak power demand met, decreased to 219.22 GW in October 2024 from 221.53 GW in October 2023. May 2024 saw peak power demand reach an all-time high of nearly 250 GW, surpassing the previous record of 243.27 GW set in S..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Unified railway app for tickets and tracking launching in December
RAILWAYS & METRO RAIL
05 Nov 2024

Unified railway app for tickets and tracking launching in December

TN drives distributed growth vision with multiple new projects
ECONOMY & POLICY
05 Nov 2024

TN drives distributed growth vision with multiple new projects

India's power consumption slightly up to 140.4 billion units in October
POWER & RENEWABLE ENERGY
05 Nov 2024

India's power consumption slightly up to 140.4 billion units in October

Bangladesh Speeds Up Payment to Adani Power Following Supply Disruption
POWER & RENEWABLE ENERGY
05 Nov 2024

Bangladesh Speeds Up Payment to Adani Power Following Supply Disruption

Paradip Port set for full mechanisation by 2030
PORTS & SHIPPING
05 Nov 2024

Paradip Port set for full mechanisation by 2030

Shree Cement and DPIIT Sign MoU to Boost Manufacturing Start-Ups
Cement
05 Nov 2024

Shree Cement and DPIIT Sign MoU to Boost Manufacturing Start-Ups

AM/NS to launch Rs 1.4 trillion steel project in Andhra Pradesh
Steel
05 Nov 2024

AM/NS to launch Rs 1.4 trillion steel project in Andhra Pradesh

Govt injects Rs 16.50 billion into RINL to ensure its sustainability
ECONOMY & POLICY
05 Nov 2024

Govt injects Rs 16.50 billion into RINL to ensure its sustainability

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000