Budget 2024-25: States To Lower Stamp Duties For Properties Purchased By Women

On July 23, the Union Budget for 2024-25 was presented in the Lok Sabha by Finance Minister Nirmala Sitharaman.

“We will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes,” the Finance Minister in the Budget Speech said.

The Finance Minister has proposed the amendment in the provisions of TDS on sale of immovable property.

Section 194-IA of the Income Tax Act provides for deduction of tax on payment of consideration for transfer of certain immovable property other than agricultural land.

Section 194-IA (1) provides that any person responsible for paying to a resident any sum by way of consideration for transfer of any immovable property shall, at the time of credit or payment of such sum to the resident, deduct an amount equal to one per cent. of such sum or the stamp duty value of such property, whichever is higher, as income-tax. Section 194-IA (2) provides that no deduction of tax shall be made where the consideration for the transfer of an immovable property and the stamp duty value of the property, are both less than Rs. 50 Lakhs.

It has been observed that some taxpayers are interpreting that the consideration being paid or credited refers to each individual buyer's payment rather than the total consideration paid for the immovable property.

Hence if the buyer is paying less than Rs. 50 lakh, no tax is being deducted, even if the value of the immovable property and stamp duty value exceeds Rs. 50 lakh. This is against the intention of the legislature.

The Finance Minister has proposed to amend section 194-IA(2) to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of immovable property.

The amendments will take effect from the 1st October, 2024.

Know Other Women Centric Announcements

The budget focused on 4 major castes in which one was 'Mahilayen' (Women).

Participation of women in the workforce

The Finance Minister has facilitated higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises.

Women-led development

For promoting women-led development, the budget carries an allocation of more than ` 3 lakh crore for schemes benefitting women and girls. This will enhance women's role in economic development.