in this regard would help in reducing unnecessary litigationtds componenta salaried individual is fully aware of the difference between gross income and net income net income is gross income less tds and the tax is levied on the gross income not the net income received after tds in the case of the sale of immovable property tds is levied at the rate of 1 if the sale value exceeds rs 50 lakh to claim tax exemption under section 54f a taxpayer is obligated to invest the entire sale proceeds in a new residential property even though the actual sale proceeds received are lower on account of tds as a relief measure it may be expressly stated that the tds component is deemed to have been invested in the new propertyalternatively the investment in a new property without the tds component should be considered sufficient compliance for tax exemption under section 54frepayment of loanany repayment of a loan taken on the original asset being sold from the sale proceeds of such asset reduces the sale amount left in hand this makes it difficult for the taxpayer to invest the total sale amount in a new property budget 2023 should provide relief by allowing a reduction in the amount to be invested in a house property by the amount of loan repaid to the banks and financial institutions if implemented the above suggestions would greatly help individual taxpayers and also help in reducing unwarranted litigation leading to the loss of scarce judicial resources