I-T dept moves against hoarders: Unsold realty inventory may be taxed

The fresh tax would be applicable on such inventories from the next financial year, according to a senior I-T official

In a bid to curb hoarding of unsold inventories by real estate developers, the income-tax (I-T) department is set to tax unsold flats that have been lying with developers for more than a year.

According to a senior I-T official, the fresh tax would be applicable on such inventories from the next financial year. The move would reduce developers’ strategy of hoarding constructed property in anticipation of price escalation in future.  

The tax would be levied on the property that is held under “stock in trade” by the developers. The tax rate could be anywhere between 8 per cent and 10