Budget 2021: Unsold residential units may get extended tax break
Budget 2021: The real estate sector may be in for further bonanza with the Narendra Modi government looking to extend tax-free status of income accruing from unsold residential units by another year.
What sources say
Expected budget proposals on taxability of unsold units
The proposal, which may form part of Budget 2021 proposals, will extend taxability of unsold units by another year, providing relief to the real state sector that has piled up inventory of residential units due to the Covid-19 impact and now faces hardships because of the tax trigger on notional values. Photo: Courtesy NAREDCO
Expected beneficiaries of this tax sop
"Provisions relating to the taxation of house property income seeks to tax unsold units held as stock-in-trade by builders of residential units for over two years. While this provision was introduced as a relief measure to the industry earlier, with initially a relaxation of up to one year, which was later extended to two years, this may not be sufficient under the current circumstances," said a person from among the top four global consultancy firms. Photo: Reuters