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

Deduction under 80IBA may apply per residential unit when unit carpet area does not exceed the prescribed limit.
Deduction under section 80-IBA allows one hundred per cent of profits from developing and building housing projects provided conditions are met, notably that the carpet area of the residential unit comprised in the housing project does not exceed prescribed limits (sixty square metres in certain metropolitan areas or ninety square metres elsewhere). Definitions treat "housing project" as predominantly residential units and "residential unit" as an independent unit with separate facilities and direct access. The discussion suggests the deduction may be assessable by reference to individual residential units rather than requiring every unit in a project to meet the carpet-area threshold.