REAL ESTATE – UNSOLD APARTMENTS/STOCKS/INVENTORY – THE BUILDERS – MAY HAVE TO PAY TAXES


We had published an article a few weeks back stating that there will be a bargain in the purchase of properties from the beginning of 2018, to substantiate the write-up, we have some information that the Income Tax Department has sent circulars to LEVY  or charge TAX on the unsold stock/inventory, which is treated as STOCK-IN-TRADE by the developers, which has remained UNSOLD for over 12 months or more as per the amended Sections 22 and 23, which was introduced in 2017.
The tax may be in the range of 8% to 10% depending upon the percentage of profits generally and normally declared by the builders and developers and it may not be uniform across the cities and the developers.
An unconfirmed report states that there are over 10,00,000 properties across the country, mainly 8 major cities, have UNSOLD/STOCK-IN-TRADE/INVENTORY OR PROPERTIES.
Sources, further states, this may be a serious challenge to the Builders and Developers.