The Economic Times-Tweak in input tax credit may hit realty developers
The government's proposal to amend the Finance Bill 2025 with respect to input tax credit (ITC) on construction expenses for leased properties is expected to impact real estate developers of commercial properties.
The Supreme Court ruling of October 2024 allowed ITC on such leased properties, providing financial relief to property developers by lowering their cost of commercial leasing. Following the ruling, tax authorities reassessed cases, leading to the issuance and withdrawal of multiple tax demands.
