Budget 2017: Query on Notional Rent for Builders

[Bijay Shrestha]

Dear Friends,

Please suggest.

In Budget 2017, it was proposed that For builders for whom constructed buildings are stock-in-trade, tax on notional rental income will only apply after one year of the end of the year in which completion certificate is received.

What is the purpose behind introducing this provision?

AI Summary

2017 Budget: Builders Taxed on Notional Rent Only After One Year of Completion Certificate A participant in a discussion forum inquired about a provision in the 2017 Budget concerning notional rent for builders. The provision specifies that builders with constructed buildings as stock-in-trade will be taxed on notional rental income only after one year following the receipt of a completion certificate. The participant seeks clarification on the rationale behind this measure.