Page 31 - Union Budget_2019

Union Budget 2019

6.3 Tax Incentive for Affordable Housing

With the enhancement of objective of “Housing for All" of the Government, it is proposed to insert new

Section 80EEA to provide deduction upto Rs. 1,50,000 for loans taken for residential house property from
any financial institutions subject to following condition

• Loan has been sanctioned from 01.04.2019 to 31.03.2020.
• The stamp duty value of the property does not exceed Rs. 45 lakhs

• Assessee does not own any other residential house property on the date of sanction of loan.

It is further proposed that where deduction under this section is allowed, no deduction shall be allowed
under any other provisions for the same or any other assessment year.

Section 80IBA provides 100% deduction for profits and gains derived from business of developing and
building housing projects, subject to certain conditions. To align the definition of “affordable housing” along

with the definition under GST Act, amendments relating to plot of land, carpet area and floor area are
proposed, the comparative analysis pre-amendment and post-amendment is as follows: -

Particulars Existing Provision Proposed Amendment

Plot of land Not less than 1,000 Sq. metres, Not less than 1,000 Sq. metres,

where the project is located where such project is located within
within the cities of the metropolitan cities of

• Chennai, • Bengaluru,
• Delhi, • Chennai,
• Kolkata or • Delhi National Capital

• Mumbai Region (limited to Delhi,
Noida, Greater Noida,

Ghaziabad, Gurugram,
Faridabad),

• Hyderabad,
• Kolkata and

• Mumbai (whole of Mumbai
Metropolitan Region);

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