80IBA Deductions in respect of profits and gains from housing projects

[Bayyareddy DK]

Dear Sir,

My client have project in rural area where there are 22 flats less than 90Sqmts and 21 flats are more than 90Sq. Mts. Project started in May 2019 and will be completed by May 2021. All other conditions are satisfied. Is my client eligible for 80IBA for 22 flats?

Please advice

AI Summary

Eligibility for 80IBA deduction hinges on individual residential units not exceeding 90 sqm, not the entire housing project. A user inquired about eligibility for 80IBA deductions for a housing project in a rural area with 22 flats under 90 square meters and 21 flats exceeding that size. The project began in May 2019 and is set to complete by May 2021. A respondent clarified that the deduction applies to residential units not exceeding 90 square meters, rather than the entire project needing all units to be under that size. The interpretation suggests that deductions are assessed per residential unit, not the entire project, but acknowledges potential contention from tax authorities.