Income Tax Act, 2025
Section 3: Ins. by Act 20 of 2002, s. 34 (w.e.f. 12003).
3. Ins. by Act 20 of 2002, s. 34 (w.e.f. 12003).
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1[80-IBA. Deductions in respect of profits and gains from housing projects.—(1) 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 of the profits and gains derived from such business.
(2) For the purposes of sub-section (1), a housing project shall be a project which fulfils the following
conditions, namely:—
(a) the project is approved by the competent authority after the 1st day of June, 2016, but on or
before the 31st day of March, 2[2020];
(b) the project is completed within a period of 3[five years] from the date of approval by the
competent authority:
Provided that,—
(i) where the approval in respect of a housing project is obtained more than once, the project
shall be deemed to have been approved on the date on which the building plan of such housing
project was first approved by the competent authority; and
(ii) the project shall be deemed to have been completed when a certificate of completion of
project as a whole is obtained in writing from the competent authority;
(c) the 4[carpet area] of the shops and other commercial establishments included in the housing
project does not exceed three per cent. of the aggregate 4[carpet area];
(d) the project is on a plot of land measuring not less than—
(i) one thousand square metres, where the project is located within the cities of Chennai,
Delhi, Kolkata or Mumbai 5***; or
(ii) two thousand square metres, where the project is located in any other place;
(e) the project is the only housing project on the plot of land as specified in clause (d);
(f) the 4[carpet area] of the residential unit comprised in the housing project does not exceed—
(i) thirty square metres, where the project is located within the cities of Chennai, Delhi,
Kolkata or Mumbai 5***; or
(ii) sixty square metres, where the project is located in any other place;
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 of the profits and gains derived from such business.
For the purposes of sub-section
the project is approved by the competent authority after the 1st day of June, 2016, but on or
before the 31st day of March, 2[2020];
the project is completed within a period of 3[five years] from the date of approval by the
competent authority:
Provided that,—
where the approval in respect of a housing project is obtained more than once, the project
shall be deemed to have been approved on the date on which the building plan of such housing
project was first approved by the competent authority; and
the project shall be deemed to have been completed when a certificate of completion of
project as a whole is obtained in writing from the competent authority;
the 4[carpet area] of the shops and other commercial establishments included in the housing
project does not exceed three per cent. of the aggregate 4[carpet area];
the project is on a plot of land measuring not less than—
one thousand square metres, where the project is located within the cities of Chennai,
Delhi, Kolkata or Mumbai 5***; or
two thousand square metres, where the project is located in any other place;
the project is the only housing project on the plot of land as specified in clause
the 4[carpet area] of the residential unit comprised in the housing project does not exceed—
thirty square metres, where the project is located within the cities of Chennai, Delhi,
Kolkata or Mumbai 5***; or
sixty square metres, where the project is located in any other place;