Deduction of 100% profits to Affordable Housing Projects:
Where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to the provisions of this section, be allowed, a deduction of an amount equal to hundred per cent (100%) of the profits and gains derived from such business.
Conditions for Section – 80IBA
(A). Main Conditions: Particulars Metro Non-Metro Location Chennai, Delhi, Kolkata or Mumbai Any other place Minimum size of project Plot size of land should not be less than Plot size of land should not be less 1,000 sq. mtrs. than 2,000 sq. mtrs. Residential unit size Does not exceed 30 sq. mtrs. Does not exceed 60 sq. mtrs. Utilization of Floor area Not less than 90% permissible under rules Not less than 80% permissible under ratio made by Government or local authority. rules made by Government or local authority.
(B). Other Conditions:
Plan should be approved by the Competent Authority after 1st June, 2016, but on or before 31st March, 2019. The Project should be completed within the period of 5-years from the date of approval by the Competent Authority. If the approval related to Housing Project is obtained more than once, the date of first approval will be considered as approval date. The Project deemed to be completed when the certificate of completion will be obtained from the competent authority in writing. Shops and Commercial Area included in the housing project cannot exceed 3% of the total built-up area. If the Individual is allotted residential unit in the project, no other unit should be allotted to the: Same individual Spouse of the individual Minor children of such children Assessee should maintain their separate books of accounts in respect of housing project. If Project is not completed within specified years from the date of approval, profits which were allowed as deductions shall be deemed to be profits of the year in which such limit expires. This section shall not apply to work-contractor (including the Central Government or the State Government). If deductions are claimed and allowed under this section, then deductions to the extent of such profits and gains shall not be allowed under any other provisions of this Act. Section – 80-ID, Income-tax Act, 1961 – FA, 2011 (Hotels and Convention Centre in specified area)