In order to check hoarding by real estate developers who resort to such a practice as a speculative move with appreciation in mind in future period of time, department of tax plans to levy a tax on such stock reported a leading business daily report.
The CBDT official said the internal guidelines have already been sent to Income tax officials across the country. A tax to the tune of 8-10% can be charged by the department for unsold flats categorized as stock in trade.
The real estate inventory is not moving down despite the favorable price slump for the end buyer which though is not a good sign.
The unsold inventory in the sector in general is representative of the sector's health and in the 8 major cities, the inventory has been noted at a huge 10 lakh number.