80IBA deduction

[hubert fernandes]

(a) with regards to 80IBA Exemption of the income tax act, if the builder developers allots area in the said housing project to land owners as part of land consideration can the builder /developers avail the deduction? please mention any case laws

(b) can the land owner avail deduction u/s 80IBA when he sells his share of area ? if so how the condition of land being more than the prescribed land area be worked? and whether the builder developers can avail deduction simultaneously

(c) if the builders developers allots more than one apartment to land owners as part of land consideration , will such allotment be violation of the condition of 80IBA and deduction will be denied?

[DR.MARIAPPAN GOVINDARAJAN]

In my view as per section 80IBA there is no distinction between the allotment to land owners and others.

Second question it is doubt.

Third question in my view it is violation.

Views of other experts solicited.

AI Summary

80IBA deduction: allotments to landowners treated like other allottees, but multiple allotments may breach statutory conditions. Questions concern entitlement to the 80IBA deduction when builders allot constructed area to landowners as land consideration, whether landowners selling their allotted share can claim the deduction and meet the prescribed land area requirement, and whether allotting multiple apartments to a landowner violates statutory conditions. The expert states allotments to landowners are not distinguished from other allotments for deduction purposes, is doubtful on landowner entitlement upon sale and area compliance, and considers multiple allotments to a landowner to likely violate the condition.