Question:
When will this tax be applicable? I suppose for the financial year 2022-2023. If yes, then there is no immediate incentive for the govt to collect tax.
Secondly, 1 year will be enough for people to transfer plots to their spouse and children and/or replace it with built-up property. Thus, completely avoiding this tax. So it’s not a very smart idea !
The only benefit I see is that this will discourage open plot investment while incentivise construction and transfer of wealth to productive sectors. Well, this could be a smart idea !
But small investor will remain undeterred. So it will not completely discourage open plots. Only plot-holding will become smaller by distributing among family members.