Eleventh Schedule – Builders and developers
Project-based fixed tax for builders and developers who registered projects by the deadline.
Who it applies to
Builders and developers with projects registered under the scheme
Structure and contents
| Part / area | What it covers |
|---|---|
| Registration | On IRIS, with an irrevocable option for each project |
| Tax | Fixed rates per sq ft or sq yd (rule 10), spread over the project life of up to 3.5 years |
| Advance tax | Quarterly instalments under s.147 |
| Profit incorporation | Up to ten times the tax paid; any excess taxed at 20% |
How it works, step by step
The law behind each step is shown beside it.
- 1Register the projectRule 3
On IRIS with the registration form and an irrevocable option.
- 2Certify areasRule 4
Approving authority or NESPAK certifies land, covered and saleable areas.
- 3Pay advance taxRule 5, s.147
One-fourth of the annual liability each quarter.
- 4Incorporate profitsRule 6
Profits up to ten times the tax paid can be incorporated in books or the wealth statement. Any excess is taxed at 20%.
How it works in practice
Projects registered under the scheme continue under it until completion. New projects are taxed under the normal law.
Worked example
For projects that are still running, the annual tax is the project tax divided by the estimated project life.
Points to watch
- New projects after the registration deadline are taxed under the NTR.