Budget 2012: Cost of buying and building a home to go up

The finance minister threw a wrench in the works for real estate by

1. Increasing service tax by 2%
Due to this increase, the corresponding increase in home price is expected to be around 0.5%
2. Introducing TDS of 1% on transfer of immovable property
TDS hits you when the value of property that is transacted goes beyond a threshold of 50 lakhs in urban areas and 20 lakhs in rural.

Guess who the builders are going to transfer the increased cost to…

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