Income Tax Act, 2025
Section 6: Ins. by s. 37 ibid. (w.e.f. 12010).
6. Ins. by s. 37 ibid. (w.e.f. 12010).
397
1[(10) The amount of deduction in the case of an undertaking developing and building housing
projects approved before the 2[31st day of March, 2008] by a local authority shall be hundred per cent of
the profits derived in the previous year relevant to any assessment year from such housing project if,—
(a) such undertaking has commenced or commences development and construction of the
housing project on or after the 1st day of October, 1998 and completes such construction,—
(i) in a case where a housing project has been approved by the local authority before the 1st
day of April, 2004, on or before the 31st day of March, 2008;
(ii) in a case where a housing project has been, or, is approved by the local authority on or
after the 1st day of April, 2004 3[but not later than the 31st day of March, 2005], within four years
from the end of the financial year in which the housing project is approved by the local authority;
3[(iii) in a case where a housing project has been approved by the local authority on or after
the 1st day of April, 2005, within five years from the end of the financial year in which the
housing project is approved by the local authority.]
Explanation.—For the purposes of this clause,—
(i) in a case where the approval in respect of the housing project is obtained more than
once, such housing project shall be deemed to have been approved on the date on which the
building plan of such housing project is first approved by the local authority;
(ii) the date of completion of construction of the housing project shall be taken to be the
date on which the completion certificate in respect of such housing project is issued by the
local authority;
(b) the project is on the size of a plot of land which has a minimum area of one acre:
Provided that nothing contained in clause (a) or clause (b) shall apply to a housing project carried
out in accordance with a scheme framed by the Central Government or a State Government for
reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any
law for the time being in force and such scheme is notified by the Board in this behalf;
(c) the residential unit has a maximum built-up area of one thousand square feet where such
residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from
the municipal limits of these cities and one thousand and five hundred square feet at 4[any other
place;]
(d) the built-up area of the shops and other commercial establishments included in the housing
project does not exceed 5[three per cent.] of the aggregate built-up area of the housing project or 6[five
thousand square feet], whichever is higher;
1. Subs. by Act 23 of 2004, s. 18, for sub-section (10) (w.e.f. 12005). As later on amended by Act 10 of 2000, s. 29
(w.e.f. 12001).
The amount of deduction in the case of an undertaking developing and building housing
projects approved before the 2[31st day of March, 2008] by a local authority shall be hundred per cent of
the profits derived in the previous year relevant to any assessment year from such housing project if,—
such undertaking has commenced or commences development and construction of the
housing project on or after the 1st day of October, 1998 and completes such construction,—
in a case where a housing project has been approved by the local authority before the 1st
day of April, 2004, on or before the 31st day of March, 2008;
in a case where a housing project has been, or, is approved by the local authority on or
after the 1st day of April, 2004 3[but not later than the 31st day of March, 2005], within four years
from the end of the financial year in which the housing project is approved by the local authority;
3[
in a case where a housing project has been approved by the local authority on or after
the 1st day of April, 2005, within five years from the end of the financial year in which the
housing project is approved by the local authority.]
Explanation.—For the purposes of this clause,—
in a case where the approval in respect of the housing project is obtained more than
once, such housing project shall be deemed to have been approved on the date on which the
building plan of such housing project is first approved by the local authority;
the date of completion of construction of the housing project shall be taken to be the
date on which the completion certificate in respect of such housing project is issued by the
local authority;
the project is on the size of a plot of land which has a minimum area of one acre:
Provided that nothing contained in clause
or clause
shall apply to a housing project carried
out in accordance with a scheme framed by the Central Government or a State Government for
reconstruction or redevelopment of existing buildings in areas declared to be slum areas under any
law for the time being in force and such scheme is notified by the Board in this behalf;
the residential unit has a maximum built-up area of one thousand square feet where such
residential unit is situated within the city of Delhi or Mumbai or within twenty-five kilometres from
the municipal limits of these cities and one thousand and five hundred square feet at 4[any other
place;]
the built-up area of the shops and other commercial establishments included in the housing
project does not exceed 5[three per cent.] of the aggregate built-up area of the housing project or 6[five
thousand square feet], whichever is higher;
1. Subs. by Act 23 of 2004, s. 18, for sub-section
(w.e.f. 12005). As later on amended by Act 10 of 2000, s. 29
(w.e.f. 12001).