“It is recommended that since the Govt. can obtain the data from various other sources like AIR, Stamp duty authorities, etc, there is no need to put the burden of compliances on consumers for 1% TDS,”
– FICCI mentioned.
Alternative suggestions
Alternatively, the commerce and business body recommended that the 1% TDS may possibly be exempted for B2C (Business to Consumer) transaction. Or, the limit on the worth of transaction could be improved to Rs 1 crore in case of metro cities.
Or, FICCI mentioned, “In the cases of B2C transactions, the exemption for TDS deduction is provided on the condition that (i) the Seller deposits 1% of the collections on a monthly basis; and (ii) it furnishes a statement containing all the details of Form 26QB on a monthly basis.”
Why 1% TDS ought to go
Explaining the rationale behind the recommendation to take away 1% TDS, FICCI noted that the major objective of bringing the requirement of 1 per cent TDS was to capture all main home transactions. However, now the similar info is obtainable to Government from numerous other sources like stamp duty authorities, Annual info Returns (AIR), Property registrar’s workplace.
“…hence there seems to be justifiable case for removal of this same compliance burden,” the Budget suggestions mentioned.
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Also, presently, the limit of Rs 50 lakh is basic irrespective of places and sort of home. However, the home marketplace of metro cities are fully distinctive from nonmetro cities. Hence, there ought to be larger threshold limits for the metro cities, FICCI mentioned.