Indian Union Budget 2019-20, Affordable housing tax incentive
As per Indian Budget 2019-2020, Tax incentive for affordable housing
The following details explain about Tax incentive for affordable housing, Indian Budget 2019
Housing for all objective of the Government and to enable the home buyer to have low-cost funds at his disposal, it is proposed to insert a new section 80EEA in the Act so as to provide a deduction in respect of interest up to one lakh fifty thousand rupees on loan taken for residential house property from any financial institution subject to the following conditions.
- loan has been sanctioned by a financial institution during the period beginning on the 1st April, 2019 to 31st March 2020.
- the stamp duty value of house property does not exceed forty-five lakh rupees;
- assessee does not own any residential house property on the date of sanction of loan.
It is also proposed that where a deduction under this section is allowed for any interest, deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year.
This amendment will take effect from 1st April, 2020 and will accordingly apply in relation to assessment year 2020-21 and subsequent assessment years.
The existing provisions of the section 80-IBA of the Act, inter alia, provide that where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to certain conditions, be allowed, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business.
With a view to align the definition of "affordable housing" under section 80-IBA with the definition under GST Act, it is proposed to amend the said section so as to modify certain conditions regarding the housing project approved on or after 1st day of September, 2019. The modified conditions are as under:
- The assessee shall be eligible for deduction under the section, in respect of a housing project if a residential unit in the housing project have carpet area not exceeding 60 square meter in metropolitan cities or 90 square meter in cities or towns other than metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida,Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); and
- The stamp duty value of such residential unit in the housing project shall not exceed forty five lakh rupees;
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to assessment year 2020-21 and subsequent assessment years.
Learn Exports Imports Free, Click here
Click here to know GST rate of your goods or service
How important Packing in export trade ?
How to Choose a product for export business
How to send export samples to foreign buyer? Tips to send samples to foreign buyer
Export marketing : How to get order
Disadvantages of Letter of credit (LC) for Exporter
Commercial risks and solutions under Export Business
Political risks in International Trade
Risks arising out of foreign laws in Import Export Business
Cargo risks under Imports and Exports
Types of Policies to cover credit risks in Import Export Trade
Causes influencing price of export goods in Export Trade
Credit risks and solutions under International Business
Foreign exchange fluctuations risks and solutions in import export Business
How to overcome the credit risk in an export business?
Does exchange rate of currency effect export business?
Risks and solutions in Export Business
What is the difference between BAF and CAF
What is Tail Gate exam hold in US import clearance
How to make DA mode of payment safe
How to make delay in delivery of Shipment?
What is Provisional Assessment in Import formalities in India?
What is said to contain in Bill of Lading.
How to export goods from India?
How to get Export Order?
Export benefit schemes in India
Export procedures and documentation
Term Zero rate on exports under GST
What is Wholesale trade and Impact of GST on Whole Sale Traders
Meaning of term Validity of composition levy under GST
What is UTGST Law under GST
Reverse Charge Mechanism Unregistered recipients under GST
Meaning of term Un-registered dealer under GST
GST exemption list of goods and service
Find HSN number or Service tariff code for GST
GST registration guidelines
Indian GST Laws
Export procedure changes after GST implementation
Factory stuffing procedures after GST implementation
Import of goods attracts IGST but not CVD under GST regime
Inspection of goods in movement, Sec 68 of CGST Act, 2017
Section 67 of CGST Act, 2017 Power of inspection, search and seizure
Section 20 of IGST Act,2017 Application of provisions
Tax wrongfully collected and paid to Central Government or State Government, IGST Act,2017