Rationalisation of Provisions of Section 80-IBA to promote Affordable Housing in Budget 2017 - 18 ..! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
Trending
Powered by Blogger.
Saturday, February 04, 2017

Rationalisation of Provisions of Section 80-IBA to promote Affordable Housing in Budget 2017 - 18 ..!

Rationalisation of Provisions of Section 80-IBA to promote Affordable Housing
in Budget 2017 - 18 ..!

The existing provisions of section 80-IBA provides for 100% deduction in respect of the profits and gains derived from developing and building certain housing projects subject to specified conditions.

The conditions specified, interalia, include the limit of 30 square meters for the built-up area of residential unit in respect of project located in the Chennai, Delhi, Kolkata and Mumbai or /  within 25 kms from the municipal limits of these four (4) cities.
Further, it is also provided that in order to be eligible to claim deductions, the project shall be completed within a period of three (3) years.

In order to promote the development of affordable housing sector, it is proposed to amend section 80-IBA so as to provide the following relaxations:

(i) The size of residential unit shall be measured by taking into account the “carpet area“ as defined in Real Estate (Regulation and Development) Act, 2016 and not the “built-up area“.

(ii) The restriction of 30 square meters on the size of residential units shall not apply to the place located within a distance of 25 kms from the municipal limits of the Chennai, Delhi, Kolkata or Mumbai.

(iii) The condition of period of completion of project for claiming deduction under this section shall be increased from existing three years to five (5) years.

These amendments will take effect from 1st April, 2018 and will, accordingly , apply in relation to the assessment year 2018-19 and subsequent years.

[Clause 37]
Rationalisation of Provisions of Section 80-IBA to promote Affordable Housing in Budget 2017 - 18 ..! Reviewed by S. Chitra on February 04, 2017 Rating: 5 Rationalisation of Provisions of Section 80-IBA to promote Affordable Housing in Budget 2017 - 18 ..! The existing provisions of sect...

No comments:

Google+ Followers