Double tax for empty homes/flats

Now you may have to pay double tax, if you have an empty house!

If you own a house and it is kept occupied, you may nkw have to pay a new tax which is the "Vacant Appartment Tax," which will be double the amount levied on the property that you own at present.

This step will open up approximately 4.80 lakh houses in Mumbai in the rental market. The proposal aims to tackle the rental housing problem in Maharashtra State.

The document states that in order the vacant flats or property are put to use, there should be double taxation, which will determine the tendency to maintain the property vacant for speculative gain.

Real estate happily welcomed the move. They said,"we talk of house shortages, but the number of vacant houses are increasing day by day and this move is necessary because people are finding difficulties in getting houses. With the increase in number of houses, the rentals will be highly moderated "

"Most of the houses which are vacant are owned by people as a part of investment for speculative gains,keeping such flats will be no longer active  as the owners will have to pay out double the money" said  Yashwant Dalal, President, Estate Agents Association Of India.

With real estate prices touching the sky , pleanty of home buyers have dropped their plans of purchasing a property and to stay on rent instead.  Because of limited housing available they end up paying high rentals.