TDS relief proposal on property sold for recoveries in review
ECONOMY & POLICY

TDS relief proposal on property sold for recoveries in review

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 Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?