With the intent to promote the objective of “Housing for All”, the government has proposed to provide incentives to both; the promoter as well as the buyer of the house property.
develops and builds affordable housing projects, shall be provided deduction of 100% of profits from such business, subject to following condition:-
-The project shall be approved by the competent authority before 31.03.2019. If the project is approved more than once, the project shall be deemed to have been approved on grant of first approval
– The project shall be completed within 3 years from date of approval. It shall be regarded as complete only when a certificate of completion is obtained in writing from competent authority
– The size of the plot and the size of the residential unit and extent of plot utilisation shall differ based on the locality as tabulated below:
|Location||Minimum Size of the Plot
|Maximum Size of the residential unit
|Within 25 kms from municipal limits of Delhi, Mumbai, Chennai and Kolkata||1000||30||90% of floor area ratio|
|Others||2000||60||80% of floor area ratio|
– Where a residential unit in the housing project is allotted to an individual, no unit shall be further allotted to him or his family member
– The built-up area of shops and other commercial establishments in the project shall not exceed 3% of the aggregate built-up area
– The promoter/developer shall maintain separate books of accounts
If the conditions are not satisfied post deduction, the deduction allowed shall be considered to be deemed income in the year in which period of completion expires
No further deduction under any other provisions of the Act shall be allowed if deduction is allowed under this Section
This deduction is not available for works contractors
The provisions are exactly similar to Sec 80IB(10), where practically there were very few beneficiaries for the scheme. We hope atleast this latest version has a few more takers.
These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years
It is proposed to amend Section 80EE to provide an additional deduction of Rs. 50,000 for first-home buyers in respect of interest on loan taken for residential house property from any financial institutions.
The additional deduction shall be available if the value of house property does not exceed Rs. 50 lakhs.
Further, the loan amount shall not exceed Rs. 35 lakhs and the loan shall be sanctioned during the period 01.04.2016 to 31.03.2017. Additionally, the assessee shall not own any residential house property on the date of sanction of loan.
Further, it is proposed that the benefit of deduction shall be available till the repayment of loan continues.
These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.