Income Tax Act, 2025
Section 4: Subs. by 37, ibid., for “built-up area” (w.e.f. 12018).
4. Subs. by 37, ibid., for “built-up area” (w.e.f. 12018).
5. The words “or within the distance, measured aerially, of twenty-five kilometres from the municipal limits of these cities”
omitted by s. 37, ibid., (w.e.f. 12018).
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(g) where a residential unit in the housing project is allotted to an individual, no other residential
unit in the housing project shall be allotted to the individual or the spouse or the minor children of
such individual;
(h) the project utilises—
(i) not less than ninety per cent of the floor area ratio permissible in respect of the plot of land
under the rules to be made by the Central Government or the State Government or the local
authority, as the case may be, where the project is located within the cities of Chennai, Delhi,
Kolkata or Mumbai 1*** , or
(ii) not less than eighty per cent of such floor area ratio where such project is located in any
place other than the place referred to in sub-clause (i); and
(i) the assessee maintains separate books of account in respect of the housing project.
(3) Nothing contained in this section shall apply to any assessee who executes the housing project as
a works-contract awarded by any person (including the Central Government or the State Government).
(4) Where the housing project is not completed within the period specified under clause (b) of
sub-section (2) and in respect of which a deduction has been claimed and allowed under this section, the
total amount of deduction so claimed and allowed in one or more previous years, shall be deemed to be
the income of the assessee chargeable under the head “Profits and gains of business or profession” of the
previous year in which the period for completion so expires.
(5) Where any amount of profits and gains derived from the business of developing and building
housing projects is claimed and allowed under this section for any assessment year, deduction to the
extent of such profit and gains shall not be allowed under any other provisions of this Act.
(6) For the purposes of this section,—
2[(a) “carpet area” shall have the same meaning as assigned to it in clause (k) of section 2 of the
Real Estate (Regulation and Development) Act, 2016 (16 of 2016).]
(b) “competent authority” means the authority empowered to approve the building plan by or
under any law for the time being in force;
(c) “floor area ratio” means the quotient obtained by dividing the total covered area of plinth area
on all the floors by the area of the plot of land;
(d) “housing project” means a project consisting predominantly of residential units with such
other facilities and amenities as the competent authority may approve subject to the provisions of this
section;
(e) “residential unit” means an independent housing unit with separate facilities for living,
cooking and sanitary requirements, distinctly separated from other residential units within the
building, which is directly accessible from an outer door or through an interior door in a shared
hallway and not by walking through the living space of another household.]
1. The words “or within the distance, measured aerially, of twenty-five kilometres from the municipal limits of these cities”
omitted by Act 7 of 2017, s. 37 (w.e.f. 12018).
where a residential unit in the housing project is allotted to an individual, no other residential
unit in the housing project shall be allotted to the individual or the spouse or the minor children of
such individual;
the project utilises—
not less than ninety per cent of the floor area ratio permissible in respect of the plot of land
under the rules to be made by the Central Government or the State Government or the local
authority, as the case may be, where the project is located within the cities of Chennai, Delhi,
Kolkata or Mumbai 1*** , or
not less than eighty per cent of such floor area ratio where such project is located in any
place other than the place referred to in sub-clause
the assessee maintains separate books of account in respect of the housing project.
Nothing contained in this section shall apply to any assessee who executes the housing project as
a works-contract awarded by any person (including the Central Government or the State Government).
Where the housing project is not completed within the period specified under clause
of
sub-section
and in respect of which a deduction has been claimed and allowed under this section, the
total amount of deduction so claimed and allowed in one or more previous years, shall be deemed to be
the income of the assessee chargeable under the head “Profits and gains of business or profession” of the
previous year in which the period for completion so expires.
Where any amount of profits and gains derived from the business of developing and building
housing projects is claimed and allowed under this section for any assessment year, deduction to the
extent of such profit and gains shall not be allowed under any other provisions of this Act.
For the purposes of this section,—
2[
“carpet area” shall have the same meaning as assigned to it in clause
of section 2 of the
Real Estate (Regulation and Development) Act, 2016 (16 of 2016).]
“competent authority” means the authority empowered to approve the building plan by or
under any law for the time being in force;
“floor area ratio” means the quotient obtained by dividing the total covered area of plinth area
on all the floors by the area of the plot of land;
“housing project” means a project consisting predominantly of residential units with such
other facilities and amenities as the competent authority may approve subject to the provisions of this
section;
“residential unit” means an independent housing unit with separate facilities for living,
cooking and sanitary requirements, distinctly separated from other residential units within the
building, which is directly accessible from an outer door or through an interior door in a shared
hallway and not by walking through the living space of another household.]
1. The words “or within the distance, measured aerially, of twenty-five kilometres from the municipal limits of these cities”
omitted by Act 7 of 2017, s. 37 (w.e.f. 12018).