Dear Friends,
Please suggest.
In Budget 2017, it was proposed that For builders for whom constructed buildings are stock-in-trade, tax on notional rental income will only apply after one year of the end of the year in which completion certificate is received.
What is the rationale behind introducing this provision?
At present, the houses which are unoccupied after getting completion certificates are subjected to tax on notional rental income. For builders for whom constructed buildings are stock-in-trade, the new provision proposes to apply this rule only after one year of the end of the year in which completion certificate is received so that they get some breathing time for liquidating their inventory.
CAclubindia
