Income Tax

No notional income for house property held as stock-in-trade u/s 23 till the certificate of completion of construction of the property is obtained

No notional income for house property held as stock-in-trade u/s 23 till the certificate of completion of construction of the property is obtained

No notional income for house property held as stock-in-trade

Section 23 of the Act provides for the manner of determination of annual value of house property.

Considering the business exigencies in case of real estate developers, it is proposed to amend the said section so as to provide that where the house property consisting of any building and land appurtenant thereto is held as stock-in-trade and the property or any part of the property is not let during the whole or any part of the previous year, the annual value of such property or part of the property, for the period upto one year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to be nil This amendment will take effect from 1st April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years.

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