CBDT suggests clarity on taxing real estate: Here are details

Releases draft rules on levying tax on under construction and completed projects

The income tax department has proposed to clear ambiguity over taxing real estate projects.

In its draft Income Computation and Disclosure Standards for real estate, the Central Board of Direct Taxes (CBDT) has suggested conditions where taxes will be levied on under construction real estate projects and where these will be imposed on constructed projects.

The draft says that in most projects such as townships, commercial projects, infrastructure projects etc, tax will be levied on under construction projects once three conditions are met. These conditions are: expenditure incurred on construction and development touches at least 25 per cent of total