Budget 2024: Property Owners to Face Higher Taxes as Loophole is Plugged

The 2024 budget addresses a tax loophole for property owners. The government plans to tax the notional rent on properties held as stock-in-trade, even if unsold. Previously, developers enjoyed a tax exemption for up to two years from the end of the financial year in which the certificate of completion was obtained. This exemption is reduced to one year. The aim is to curb the practice of holding large inventories of unsold properties to avoid taxes. Property owners may face higher tax burdens, impacting real estate developers and investors. The budget also introduces measures for improving compliance and reducing litigation in real estate.