1% TDS on property transaction

After the passage of Finance Bill 2012 1% tax will be deducted at source by the Buyer of all property transactions above a threshold. The Buyer may be asked to show the TDS deducted and proof of deposit before Registration. So all seller of property exceeding 50 lakhs (in Metro city) and 20 lakhs (other than Metro city) are less likely to evade Tax.  This will cover all home and Land transaction excluding farm Land. The objective is to discourage Black Money in Real estate sector which is prevailing since last so many years. The new rule will put the buyer into troble as they have to ensure compliance  .Presently about 50% of the Real estate transaction are in Cash and remaining 50% are in white.