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No Income tax for Promoters & Builders?

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No Income tax for Promoters & Builders?

Last updated: July 27 2010
24 | Posts
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  • #21

    #21

    Re : No Income tax for Promoters & Builders?

    Originally posted by realacres View Post
    Yes, it is true & the builders have been given this provision under 80IB. Under this, all flats less than 1500 sq ft sold by the builder will be free from any income tax. The point is the possession should be given before Mar 2011. This is the sole reason why many builders prefered white money as it was tax free.

    The intention of the govt (just to fool public) was this NO INCOME TAX to the builder would translate into affordable housing to masses as builders will pass on this benefit to the buyers. However, builders as usual, didn't pass on this benefit making govt poorer, & builder richer at the cost of govt!! It is the mango man who buys houses here suffers the most. He pays to bank, builder & govt . So, loot the govt man, avoid paying taxes honestly.
    Slightly out of context (my apology for this ).
    IF this is the case ( benefit only for the units getting poss by MAr 2011 ), then their will be lot many builders trying to build the flats and give possession by Mar2011 to rip the benefit of this exemption.
    This scenario is equivalent to Tata Motors building huge inventory before March end to complete the yearly target. In April, the dealers are flooded with vehicles, excess supply, less demand.
    Will this scenario possible in RE ? Then, do we have chance of getting flats in bargained price in Feb and Mar 2011 ?

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    • #22

      #22

      Re : No Income tax for Promoters & Builders?

      Good info from this thread. So maybe all buyers can wait another 6 month to see the magic of ready possessions flat..... No wonder if there is huuuuuuuuuuge availability with maximum options and builder would try to sell their flat's before March 2011... so its time to count....... Isn't it?

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      • #23

        #23

        Re : No Income tax for Promoters & Builders?

        Originally posted by HemantDesh View Post
        Slightly out of context (my apology for this ).
        IF this is the case ( benefit only for the units getting poss by MAr 2011 ), then their will be lot many builders trying to build the flats and give possession by Mar2011 to rip the benefit of this exemption.

        Will this scenario possible in RE ? Then, do we have chance of getting flats in bargained price in Feb and Mar 2011 ?
        Dear HemantDesh,
        The condition is to get completion prior to 31st March 2011 and independent on number of actual flats sold. In other words there could be few unsold flats in the said project.
        Jitendra Pethkar | Pethkar Projects

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        • #24

          #24

          Re : No Income tax for Promoters & Builders?

          Anyways, completion certificate has nothing to with sales.
          So going forward, will builders have to pay income tax on their new projects?

          There goes my chance of switching profession from to builder ...

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          • #25

            #25

            Re : No Income tax for Promoters & Builders?

            Facts about 80IB

            Originally posted by abeerbagul View Post
            Anyways, completion certificate has nothing to with sales.
            So going forward, will builders have to pay income tax on their new projects?

            There goes my chance of switching profession from to builder ...
            All the projects sanctioned after Mar 08 (earlier it was Mar 07) will not be eligible for this schemes as it has now been scrapped.

            To cut long story short, the builders were eligible for NO Income Tax only if they met the following criterion:-

            1. The project has to be sanctioned between Mar 03 to Mar 08,
            2. The area of the flat in Pune has to be less than 1500 sq ft,
            3. The possession should be before Mar 11,
            4. No 2 flats can be sold in the same family under this schemes. So, a father & son can't buy in the same project, let alone someone who wants to buy multiple flats in his/her own name!!

            Henceforth, the builders will have to pay income tax for all projects sanctioned post Mar 08 as well as those which get completed after Mar 11 (even if the project is sanctioned before Mar 08 under this scheme).
            If you are happy, you are successful.

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