Under Section 80-IA of the Income-tax Act, profits of approved housing projects where the
development and construction commences on or after1.10.1998 and is completed by 31.3.2001,
are fully deductible. The conditions necessary for claiming the benefit are that the
approved housing project should be on a minimum area of once acre and ahould have dwelling
units with a maximum built up area of 1000 sq. ft.
It has been modified to include that in areas other than falling in and ithin 25 kms from
the municipal limits of Delhi and Mumbai, the built up area of dwelling units may be upto
a maximum limit of 1500 sq ft. instead of 1000 sq ft. at present to make them entitled for
the benefit. The built up area for areas falling in Delhi and Mumbai and within 25 kms. Of
the municipal limits of both, however, shall remain the same.
The proposed amendment will take effect from April 1, 2000 and will, accordingly apply in
relation on the assessment year 2000 - 2001 and subsequent years.
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