The 2019 budget imposes TDS for parking charges, maintenance fees while purchasing a house.

By Abhay Shah, Realty Quarter

The cost of the property while buying should be added to the charges, such as club Membership fees, car parking charges, electricity and water charges, maintenance fee, advance fee, etc., at the time of determining how much tax deduction should be made from the property at the moment of buying the property. This amendment will take effect on 1 September 2019.

Calculation of the tax to be deducted at the moment of payment for an estate, are having no inclusion of these fees at present. In order to determine the tax amount to be deducted, only the sum paid for buying a house is considered.

“The customer must deduct the amount of 1% of TDS when buying a property whose value is more than 50 lakhs for immovable property. The limit of Rs.50 lakhs to consider real estate, including all other fees incidental to buy immovable property, such as car parking fee, society fee, the club membership fee paid by the purchaser, would be effective from 1 September 2019. In the past, owing to a lack of clarity, the limit of Rs.50 lakh were only regarded with respect to the purchase value and no extra charge was taken into account.” said, Shalini Jain, Tax partner, EY India.

TDS at 1% has to be deducted by the customer according to the present income tax law if the valuation of the property is more than Rs.50 lakh.