Eligible Assessee
This section is applicable to all Assessee.
Eligible Amount of Deduction
100% of profit of housing project or rental housing project.
Conditions Fulfilled
Project shall be
- Approved by competent authority after 01-06-2016 up to 31-03-2022.
- Project shall be completed within 5 years from the date of approval.
- Carpet area of shops and other commercial establishments is not more than 3% aggregate Carpet area.
Conditions relating to size of plot of land, residential units etc.
| Location of the Project | Plot size of Project | Carpet area of each unit | % of Floor area ratio to be utilised by the project |
| Bengaluru, Chennai, Delhi NCR (Including Noida, Ghaziabad, Gurugram, Faridabad, Hyderabad, Kolkata, or Mumbai) | Min. 1000 sq mts | Max. 60 sq.mts | Min. 90% |
| Other Place | Min.2000 Sq. mts | Max. 90Sq. Mtr | Min. 80% |
- Where residential unit in the in the housing project is allotted to an individual, no other residential units shall be allotted to that individual/his spouse/ minor children.
- Assessee maintains separate books of account in respect of this project.
- Project shall not be executed as mere works contractor.
- If projects is not completed in specified period, the deduction claimed in earlier years will be deemed to be income of years in which time limit expires
Additional Condition if housing projects on or after 01/09/2019
- Stamp Duty Value of residential unit should not be more than Rs: 45,00,000.
- Conditions relating to size of plot of land and residential unit etc.
Explanation Note
For the purpose of this clause, the expression “exclusive balcony or verandah area” means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and “exclusive open terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allotted;
- 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.
- “Rental Housing Projects” means a project which is notified by the Central Government in the official gazette under this clause on or before the 31st day of March 2022 and fulfills such conditions as may be specified in the said notifications
