Builders may now pay tax on unsold flats

With a view to garner more taxes, the revenue department has put forward a proposal, which is under consideration by the government, asking builders to pay taxes on their unsold stock of ready houses. If implemented, this will lead to a reduction in home prices and impact developers holding about 100,000 ready properties across the country. According to a Liases Foras report, unsold inventory has increased to 765 mn sq ft in June 2014 as compared to 734 mn sq ft in March 2014.