Is Sec 80IBA benefit applicable on Sec 4a (i) of Jan Awaas Yojna

There is provision of 100% tax benefit under new section 80IBA of Income tax to developers and builders working for low cost housing under pradhan mantri/mukyamantri jan awaas yojna. Does this benefit applicable to provision 4A (i) ( where EWS/LIG flats being built on government land)of jan awaas yojna ?
Asked 4 months ago in Income Tax from Jaipur, Rajasthan
As per our view the same is not applicable to Jan Awaas Yojna. Will again check and get back.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Hi,

To claim exemption u/s 80IBA of the income tax act, there are certain conditions to be fulfilled.

Project has to be approved by competent authority after June 1 2016 but before March 31, 2019.
Project should be completed within 3 years from date of approval.
Buil up area of the shops and other commercial establishment included in the housing project should not exceed 3 % of aggregate built up area
Size of plot, area of residential units and minimum utilization of floor area ratio (FAR) should satisfy the criteria

Project within the city of Mumbai, kolkatta, delhi, chennai or 25 kms from municipal limits of these  cities 

a) area of plot not less than 1000sq mt 
b) area of residential units not to exceed 30 sq mt
c) utilization of permissible FAR not less than 90%

Project in any other city

a) area of plot not less than 2000 sq mt
b) area of residential units not to exceed 60 sq mt
c) utilization of permissible FAR not less than 80%

IF the above conditions are satisfies the assessee can claim deduction under the above section.

However deduction is not available to any assessee who executes the housing project as a works contract awarded by any person ( including the Central/state government)

Hence if you are carrying out the project as a works contract. You would not be eligible for the aforesaid deduction.

Thanks & Regards

Ria Nagpal
(Partner)

Manish Nagpal & Co
Chartered Accountants
Ria Nagpal
CA, Ahmedabad
28 Answers
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If you develop the flats on project given by some other person (central/state govt in this case), you might not be available for deduction.
Abhishek Dugar
CA, Mumbai
773 Answers
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Hello Sir,

No in such a case, No benefit can be claimed.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
719 Answers
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