Deduction in respect of profits and gains from undertakings engaged in developing and building housing projects
According to the existing provisions of section 80-IB(10), 100 % deduction is available in respect of profits derived by an undertaking from developing and building housing projects approved by a local authority before 31st March, 2008. This benefit is available if the following conditions are fulfilled:
The project has to be completed within 4 years from the end of the financial year in which the project is approved by the local authority.
The built-up area of the shops and other commercial establishments included in the housing project should not exceed 5% of the total builtup area of the housing project or 2,000 sq. ft. whichever is less.
I n order to get the tax benefit of the above provisions during the slowdown in the housing sector due to global recession, it is proposed to increase the period allowed for completion of a housing project from existing 4 years to 5 years from the end of the financial year in which the housing project is approved by the local authority and a further relaxation is proposed to be given in the current norms for built-up area of shops and other commercial establishments in housing projects at 3 percent of the aggregate built-up area of the housing project or 5,000 sq. ft. whichever is higher for projects approved on or after 1st April, 2005 which are pending for completion.
According to the existing provisions of section 80-IB(10), 100 % deduction is available in respect of profits derived by an undertaking from developing and building housing projects approved by a local authority before 31st March, 2008. This benefit is available if the following conditions are fulfilled:
The project has to be completed within 4 years from the end of the financial year in which the project is approved by the local authority.
The built-up area of the shops and other commercial establishments included in the housing project should not exceed 5% of the total builtup area of the housing project or 2,000 sq. ft. whichever is less.
I n order to get the tax benefit of the above provisions during the slowdown in the housing sector due to global recession, it is proposed to increase the period allowed for completion of a housing project from existing 4 years to 5 years from the end of the financial year in which the housing project is approved by the local authority and a further relaxation is proposed to be given in the current norms for built-up area of shops and other commercial establishments in housing projects at 3 percent of the aggregate built-up area of the housing project or 5,000 sq. ft. whichever is higher for projects approved on or after 1st April, 2005 which are pending for completion.
No comments:
Post a Comment