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Relaxed taxes on ready inventory may not help realty sector: Analysts

CRISIL Research believes that though the number of unsold inventory remains moderate to high in the metros, the share of ready-to-move properties is small

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Raghavendra Kamath

2 min read Last Updated : Jun 26 2019 | 3:40 PM IST

The government’s move to relax taxes on notional rent on unsold ready inventory to two years is unlikely to help property developers much due to lower absorption of units and the liquidity crunch they are facing, analysts said.

Many developers are facing financial challenges after the IL&FS defaults, after which non-banking finance companies — the major financiers to real estate firms — slowed disbursals.

“Given that the industry is reeling under the pressure of unsold inventory, the relaxation on notional rental income to two years is expected to provide marginal relief to developers who are already under stress,” said Amish

Topics : Interim Budget Realty sector

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