June 20, 2015
https://www.facebook.com/mehtarahulc/posts/10152856891451922
A possible positive step --- income tax dept to force builders to pay 20% of deemed rent from vacant flats
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I say possible , because it is also possible that FinMin / PM will take bribe in cash or kind and cancel this step. The "bribe in kind" could be "I dont want cash , but you help me in winning elections in Bihar , bengal , and I will srop this law" !!!
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Currently, empty land is not taxed. and that SoMoKe will keep that flaw or feature in tact !!
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Empty flat owned by non-builder is taxed. But empty flat owned by builder is NOT taxed as of now.
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NaMo has proposed change in Income Tax act , which will enable Income Tax dept to to force builders to pay income tax on empty flat. The tax will be about 20% to 25% of the "possible rent" that can come.
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How will "possible rent" be decided?
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Lets see --- details are yet to come.
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The step is good, but half baked, because empty land is not taxed. And a major loop hole is ----- finished flat will be taxed and unfinished flats will not be taxed. So a buider can always show a flat as unfinished and evade tax.
.
Lets see when details come.
.
prima facie --- it is a good step. But if final law-draaft is poorly made, then effects will be zero.
.
https://www.facebook.com/mehtarahulc/posts/10152856891451922
A possible positive step --- income tax dept to force builders to pay 20% of deemed rent from vacant flats
.
I say possible , because it is also possible that FinMin / PM will take bribe in cash or kind and cancel this step. The "bribe in kind" could be "I dont want cash , but you help me in winning elections in Bihar , bengal , and I will srop this law" !!!
.
Currently, empty land is not taxed. and that SoMoKe will keep that flaw or feature in tact !!
.
Empty flat owned by non-builder is taxed. But empty flat owned by builder is NOT taxed as of now.
.
NaMo has proposed change in Income Tax act , which will enable Income Tax dept to to force builders to pay income tax on empty flat. The tax will be about 20% to 25% of the "possible rent" that can come.
.
How will "possible rent" be decided?
.
Lets see --- details are yet to come.
.
The step is good, but half baked, because empty land is not taxed. And a major loop hole is ----- finished flat will be taxed and unfinished flats will not be taxed. So a buider can always show a flat as unfinished and evade tax.
.
Lets see when details come.
.
prima facie --- it is a good step. But if final law-draaft is poorly made, then effects will be zero.
.
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